Shares of state-run Bharat Heavy Electricals Limited surged as much as 5.4% on Wednesday to hit a 52-week high of ₹164.60 apiece on the BSE after the company bagged an order worth ₹2,956 crore from the ministry of defence to procure super rapid gun mount (SRGM) and accessories for Indian navy. Moreover, the company has also signed a memorandum of understanding with Electrite de France S.A. France (EDF), which is the largest nuclear operator globally to maximise the local content of the Jaitapur Nuclear Power Plant Project to be established by NPCIL in India.

The scrip opened higher at ₹160.15 on Wednesday, up 2.81% as against the previous closing price of ₹156.15. At 12:12 pm, the share price of the company was trading 4.13% lower at ₹162.60. The company's market capitalisation stood at ₹56,618.35 crore, with more than 29 lakh shares exchanging hands on the BSE as against the two-week average of 28.87 lakh shares. The company hit a 52-week low of ₹66.30 on February 27 this year. In the year-to-date period, the counter has given 103.06% in returns.

According to the ministry of defence, the upgraded SRGM will be manufactured at BHEL's Haridwar plant. "The upgraded SRGM, which will be manufactured by M/s BHEL at its Haridwar Plant, is a medium calibre anti-missile/anti-aircraft point defence weapon system which provides a sustained rate of fire and high accuracy. The weapon system is capable of multiple engagements in multi-threat scenarios and has a proven record of very good performance against missiles and highly manoeuvrable fast attack crafts," the defence ministry says.

"Upgraded SRGMs will be installed onboard Indian Navy's in-service and newly built ships by M/s Mazagaon Dock and Shipbuilders Ltd., Mumbai, and Garden Reach Shipbuilders & Engineers, Kolkata. The project will generate employment of two and a half lakh mandays over a period of five years and encourage active participation of various Indian industries including MSME, thus significantly contributing to the Government's efforts to achieve 'Atmanirbharta' in defence," it adds.

Meanwhile, BHEL’s memorandum of understanding with EDF will also explore larger collaboration for the European Pressurised Reactors (EPRs) and for the NUWARD SMR (Small Modular Reactor).

In the July to September quarter of FY24, the state-run company reported a net loss of ₹238.12 crore as against a profit of ₹12.10 crore in the corresponding period of the previous year. The company’s net income in the September quarter also declined 2.07% to ₹5,305.38 crore as against ₹5,418.74 crore in the same period last year.

Analysts at ICICI Securities had earlier said with the domestic thrust towards manufacturing and the company’s efforts towards improving its balance sheet, BHEL’s business can stage a strong turnaround given its strong technical track record. “It is taking cost-control measures and working on reducing receivables, with an increased focus on cashflow,” the brokerage firm said.

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BHEL stocks

BHEL shares hit 52-week high on bagging ₹2,956 cr order from defence ministry