Bhel drops on uncertainty about NTPC order

Bharat Heavy Electricals dropped 3% to Rs 139.25 at 11:45 IST on reports that the company may lose a major power plant order from state-run utility NTPC.

Meanwhile, the S&P BSE Sensex was down 32.25 points or 0.12% at 27,953.29.

On BSE, so far 3.43 lakh shares were traded in the counter as against average daily volume of 8.52 lakh shares in the past one quarter. The stock hit a high of Rs 143.30 and a low of Rs 138.55 so far during the day. The stock had hit a 52-week high of Rs 252 on 21 August 2015. The stock had hit a 52-week low of Rs 90.40 on 29 February 2016. The stock had outperformed the market over the past one month till 22 August 2016, gaining 1.77% compared with the Sensex's 0.66% rise. The scrip had also outperformed the market in past one quarter, rising 20.38% as against the Sensex's 10.61% rise.

The large-cap company has equity capital of Rs 489.52 crore. Face value per share is Rs 2.

As per reports, according to a foreign brokerage, NTPC is re-visiting its tender for four power plants of 1000 megawatts (MW) capacity each for its Pudimadaka ultra mega power project. The tender was earlier awarded to Bharat Heavy Electricals (Bhel). The order accounts for around 4% of Bhel's total order book, brokerage said. The bidding for the project was based on imported coal price, but NTPC is likely to call for fresh bids based on domestic coal price, the brokerage added.

Bhel's net profit fell 59.5% to Rs 359.58 crore on 20.8% fall in net sales to Rs 9792.04 crore in Q4 March 2016 over Q4 March 2015.

State-run Bhel is an integrated power plant equipment manufacturer. It is one of the largest engineering and manufacturing companies in India engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for core sectors of the economy, viz. power, transmission, industry, railways, renewable energy, oil & gas, water and defence. The Government of India currently holds 63.06% stake in Bhel (as per the shareholding pattern as on 30 June 2016)

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