Bonus bounty powers Bhel’s upmove

As many as 48,353 shares changed hands in the counter on BSE.Rumours of a bonus, stock-split boosted the stock ahead of the results announcement. From Rs 2315.80 on 23 January 2007, the stock rose 5.7% in just two trading sessions to Rs 2448.35 on 25 January. The announcement of a bonus hit the market after trading hours on 25 January.

At the time of declaring Q3 results, Bhel also unveiled a 1:1 bonus issue on Thursday (25 January). Bhel reported 58% growth in net profit in December 2006 quarter to Rs 667.70 crore, on 32% growth in sales to Rs 4339.70 crore.

The order backlog at end of Dec 2006 was Rs 46700 crore, a rise of 38% on year-on-year. The current price of Rs 2500 discounts its FY 2006 (year ended 31 March 2006) EPS of Rs 68.60, by a PE multiple of 36.4.