Bhel gains on reports Government denies further stake sale

Bharat Heavy Electricals rose 1.94% to Rs 167.85 at 9:57 IST on BSE after Heavy Industry Minister Anant Geete clarified to the media that there were no plans of divestment of the government's stake in the company.

Meanwhile, the BSE Sensex was down 41.92 points, or 0.17%, to 25,268.41.

On BSE, so far 1.42 lakh shares were traded in the counter, compared with an average volume of 5.25 lakh shares in the past one quarter.

The stock hit a high of Rs 168.60 and a low of Rs 166.20 so far during the day. The stock hit a 52-week high of Rs 299.50 on 4 February 2015. The stock hit a 52-week low of Rs 164.10 on 8 December 2015.

The stock had underperformed the market over the past one month till 7 December 2015, sliding 11.84% compared with 2.80% decline in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 15.85% as against Sensex's 2.56% rise.

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

According to reports, Heavy Industry Minister Anant Geete has categorically denied that a propsoal of further stake sale in Bharat Heavy Electricals (Bhel) is being considered by the government at present.

As on 30 September 2015, the government held 63.06% stake in Bhel. In March 2014, the government had sold 4.66% stake in the company.

However, Geete reportedly admitted that the performance of Bhel is improving and the company has got robust orders in the current fiscal.

After two difficult years, Bhel has so far got orders over Rs 22000 crore, he said while speaking for the World of Industry event starting from Wednesday, 9 December 2015.

Bharat Heavy Electricals' (Bhel) reported net loss of Rs 204.90 crore in Q2 September 2015 compared with net profit of Rs 124.84 crore in Q2 September 2014. Net sales declined 3.2% to Rs 5834.95 crore in Q2 September 2015 over Q2 September 2014.

Bhel is the largest engineering and manufacturing enterprise in India in the energy related/infrastructure sector. The company caters to the core sectors including power, transmission, industry, transportation, renewable energy, oil & gas and defence.

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