The BHEL stock has shot up more than 15 per cent over the last five trading sessions. The rally started after the company released its provisional results for 2015-16. At ₹43,727 crore, BHEL’s order intake in 2015-16 is its highest ever in a fiscal year. The total order book now stands at ₹1.1 lakh crore, 4.2 times the company’s gross revenue for 2015-16. The commissioning of 15,059 MW of power generating equipment last fiscal is also the highest ever by BHEL. The rally could also be partly attributed to reports that BHEL has been awarded the Maitree power projects in Bangladesh. The company has not confirmed this yet.
The company’s loss of ₹877 crore for 2015-16 compared with profit of ₹1,419 crore for 2014-15 does not seem to have perturbed the market. The near-halving of the BHEL stock price seems to have factored in the poor results over the last year. Despite the recent rally, the stock trades at less than its estimated book value as of March 2016 (₹139).