BHEL signs tech pact with E2S for excitation systems; stock up 4%

BHEL said it has signed a TCA with South Korea's E2S Company to strengthen its capabilities in excitation systems for synchronous machines

BHEL share price: Shares of Bharat Heavy Electronics Limited (BHEL) jumped nearly 6 per cent to hit an intraday high of ₹281 on the National Stock Exchange (NSE) in an overall subdued market. At 02:00 PM, the stock was trading at ₹276.3, up by 4 per cent compared to previous session's close of ₹265.70. In comparison, the NSE Nifty50 index was quoting at 23,774.10 levels, down by 223.25 points or 0.93 per cent. 

 

In the last three sessions, the stock has jumped over 14 per cent. The company's total market capitalisation jumped to ₹96,122.36 crore, up ₹3,604 crore from ₹92,518.42 crore on Wednesday. Its 52-week high was ₹305.90, and its 52-week low was ₹205.12.

 

 

On Thursday, BHEL said it has signed a technology collaboration agreement (TCA) with South Korea's E2S Company to strengthen its capabilities in excitation systems for synchronous machines. 

 

According to the exchange filing, the agreement involves static excitation systems (SEE) and brushless excitation systems.

 

"This TCA would help BHEL to design, engineer, manufacture, install, commission, service, test, retrofit and sale of both static & brushless excitation systems in India and in overseas territories," it added. 

 

Additionally, the TCA would also enable BHEL to maintain its competitive edge and strengthen its capabilities to cater excitation system business for synchronous machines and contribute to the Government’s ‘Make in India’ initiative.

JM Financial on BHEL 

According to JM Financial, BHEL is set to enter FY27 with a strong order book of at least ₹2.5 trillion, supported by a strong pipeline of 24 GW projects likely to be awarded over FY27–29. The government’s approval to import 21 critical inputs from China is expected to support execution and support margins. However, shortage of key gases such as RLNG, LPG (metal cutting, industrial heating) and helium (leak tracer gas) is likely to impact operations. 

 

The brokerage expects a revenue shortfall of ₹25,000–30,000 crore in Q4FY26, lowering FY26 revenue estimates to ₹315 billion from ₹335 billion earlier. JM Financial expects Ebitda margins to expand from 4.4 per cent in FY25 to 10.7 per cent by FY28, with EPS rising to ₹12. It has maintained a 'Buy' rating with a target price of ₹345 based on 30x Mar’28E earnings per share (EPS).

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