The growing thermal order inflows aided by orders from Indian railways is what has got the street excited on the $3.7 billion engineering and capital goods company, BHEL. The stock zooms for the second consecutive day with total gains of about 12 percent.

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A revised thermal pipeline is expected to drive order inflow visibility for this company. Nuvama Research expects BHEL to be a key beneficiary of the rising thermal market in the country. Currently, there is limited participation from private players and hence, competition is less, barring L&T.

On the railways front, BHEL is optimistic to ride on the ongoing upgradation of Indian railways. In April, the company in a consortium received an order to supply 80 Vande Bharat trains implying Rs 24,000 crore of product order value. Further, an additional order for Annual Maintenance Contract (AMC) has also been placed for 35 years.

Apart from the Vande Bharat train sets (600–700) in the pipeline to be ordered over the next four–five years, BHEL’s capabilities are likely beneficiaries of ordering for upgradation of 6,000 HP locos to 9,000 HP (freight electric locos), IGBT composite converters, track maintenance machines for Indian Railways, etc.

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Other railways stocks such as RVNL and IRFC are also buzzing in trade on increased spending to boost railway infrastructure. BHEL soars 7 percent in trade on Wednesday.