In the Stock Exchange filing, the Bharat Heavy Electricals Limited (BHEL), stated that its board of directors (BoD) will consider and approve a proposal of share buyback, on Thursday, October 25, 2018. The announcement was made after stock market closing hours, on Monday, 22 October 2018.
As per reports, BHEL’s net profit jumped 92.50 percent to Rs 155.58 crore on 7.6 percent growth in net sales to Rs 5,790.08 crore in Q-1 June 2018, on Y-o-Y basis.
Followed by the buyback announcement, the share price of the BHEL has jumped upto 2 percent, intraday. The rise in the stock has come despite the broader market outlook is muted, while the BSE Sensex was trading down at 33980-levels and NSE Nifty also down by 0.57 percent.
At 13:00 hrs, Tuesday, BHEL stock jumped 0.81% on quote at Rs. 74.35 on the BSE while on the NSE, the stock traded at Rs. 74.15 up by 0.27%.The stock opened at Rs. 75.00 and touched a High and low of 76.04 and 73.90 respectively, on the NSE.
Advantage of Share Buyback: Buyback of shares or securities results in lower capital base. It improves post-buyback earning per share (EPS) and appreciates significantly the price-earnings ratio (PER) among other benefits.