COMPANY HISTORY  Bharat Heavy Electronics Limited (BHEL) one of leading Navaratna companies of India was founded in the year 1956. It is a public sector company engaged in the engineering and manufacturing businesses. The company installed its first plant in the year 1956 at Bhopal, then in 1960’s the company launched another three units at Haridwar, Hyderabad and Thiruchirapalli to accelerate its production level. The company offers a wide gamut of services ranging from project feasibility studies to after sales service. The company operates in three segments namely Power, Industry and International operations. It manufactures and supplies more than 180 products and it includes turbines, power plants, Boilers, Switch gears, Transformers, insulators etc. It owns and operates R&D centre at Hyderabad with cutting edged technologies. It recently announced that it is planning to pump more than Rs.500 crore for R&D in this fiscal. BHEL is certified ISO 9001-2000 for quality management, ISO 14001 for environmental management systems and OHSAS-18001 for safety management for all its manufacturing units and offices. The company has a wide domestic network with 14 manufacturing plants, four power sector regions eight service centers and 15 regional offices.

RECENT DEVOLEPMENTS

BHEL entered in to joint venture with Nuclear Power Corporation of India Limited (NPCIL) for undertaking nuclear projects in India and Offshore.  

• The company is planning to set up a 125 MW gasified power plant in a tie up with Andhra Pradesh Power Generation Corporation at VijayWada. The central gave its assent recently for installing the project.
• It recently bagged an order worth 500 crore for supply of combustion boilers and auxiliaries from Koniambo Nickel SAS an offshore Joint venture company. 
• The company took over the management of M/S Bharat Heavy plates and vessels as its subsidiary. 
• The company was awarded ICWAI national award for excellence in cost management for the third consecutive time. 
• BHEL bagged an order worth Rs.1800 Million for the supply of two Gas Turbine generating units from International Energy Resources (UAE).

FINANCIALST

he company announced its financial results for the quarter ended June 30^th, 2008 in the month of May. The net profit rose 33% when compared to the corresponding quarter ended June 30, 2007. The net profit rose to Rs.3.84 Billion from Rs.2.88 Billion derived in the same quarter last year. The Company’s total income increased by 34% on YoY basis.Net sales rose 33.87% to Rs.43292.40 Million against Rs.32339.2 Million posted in the corresponding period last year. Operating profit soared to Rs.5928.7 Million from Rs.5169 Million earned in quarter ended June 30th, 2007. 

STOCK OUTLOOK

The stock is moving in the region of Rs. 1500-1600. It has a near term support level at Rs. 1380 and resistance level at Rs.1800 and then at Rs.2000. As the company’s Q1 results are good the stock is expected to move in the upward course. Both the near term and long term investors may pick this stock at this level as the Q1 results will aid profits to the investors. In the back drop of Congress dominated UPA winning the trust vote and proceeding with Nuclear Deal Power sector is expected to receive more funds and attention. Long term investors may well add to their portfolio a quality stock like BHEL to benefit from this run.