Pick of the Week: BHEL

BUY BUY BUY BHEL

Equity : 489.52 Cr, BSE Code : 500103, CMP : 1724.50

BUY BHEL @ 1724 to 1800

In India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77.

BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centers.

BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has �Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive and Industrial users. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC). Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network. Supplied over one million Valves to Power Plants and other Industries. BHEL's operations are organized around three business sectors, namely Power, Industry - including Transmission, Transportation, Telecommunication & Renewable Energy - and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market.

BHEL's vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player.

The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management? all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

HEADLINES

* BHEL wins EPC contract for 700 MW Combined Cycle Power Plant through International Competitive Bidding

* BHEL once again bags EPC contract for 350 MW Combined Cycle Power Plant through International Competitive Bidding

* BHEL achieves another breakthrough in Libya Secures EPC contract for 300 MW Gas Turbine based Power Plant

* BHEL bags largest long-term contract for oilfield equipment from ONGC

* Business Standard ranks BHEL as the Star Performer of the year

Sales and NP for year ended 06 / 07 were 17320.7Cr & 2414.0Cr. Sales and NP for latest Quarter 4964.1Cr & 771.9Cr. On YOY basis NP has increased by 44 % & based on quarter latest its increased by 16% Dividend during year ended 06 � 07 was 245%