Five reasons why BHEL shares have jumped
For the full year 2011, Thomas Cook's net profit increased 19.25 per cent to Rs 56.24 crore, against Rs 47.16 crore in 2010.
Shares of heavy equipment maker Bharat Heavy Electricals Limited soared on the bourses today. BHEL traded 9% higher at Rs 309.90 at 1000 hours in an up market today.
Here are the reasons why the stock has suddenly spiked:
1) The Supreme Court yesterday cleared the way for state-run power generation utility NTPC Ltd to place orders worth Rs 16,000 crore for supercritical equipment. The court ruled that Ansaldo Caldaie, an Italian boiler maker, had failed to technically qualify for the bidding process.
2) BHEL witnessed a negative order inflow of Rs 3,500 crore for the October-December quarter. For the nine months ending December 2011, the order inflow for BHEL stood at Rs 10,000 crore against a guidance of Rs 55,000 crore for FY12.
3) The bulk tender award will be a significant boost to BHEL's order book. BHEL is assured of Rs 5,000 crore worth of orders after the Supreme Court Order.
4) Government's thrust to speed up stalled projects to improve near-term outlook.
5) Analysts say BHEL is trading at 12-times FY13E earnings and still has headroom to reflect this optimism.