Bharat Heavy Electricals Ltd, which has staged a comeback in the last few weeks, on Wednesday scaled to its highest level since more than four months.

The stock of the state-run power equipment major was up by 2.4% to Rs 185.50 on the BSE in afternoon trades. Earlier in the session, it hit a high of Rs 187.50, which is its highest level in over four months - since 6 September 2002.

The stock has witnessed sustained buying support from an early November 2002 low, on the back of a number of new order wins in recent months. From a low of Rs 145.55 on 1 November last year, the stock has gained 27.4% in two-and-half months to the current Rs 185.50.

With a strong order book position, and a drive for cost-cutting, Bhel is poised for a better performance in the forthcoming quarters, according to analysts. It has bagged a series of orders in recent months. The company has secured various contracts aggregating Rs 4,000 crore (Rs 40 billion) in the last few months, according to a domestic brokerage. Among the major recent order wins include a $ 74 million order to set up an 800-MW hydro electric project for National Hydro Electric Power Corporation. The project is expected to be completed in 52 months.

Bhel's order book stood at Rs 13,500 crore (Rs 135 billion) as at end September 2002.

The company is said to be targeting raw material cost reduction at all its manufacturing facilities by 2% every year, which, analysts feel, is a good move by the company to improve its profitability and attract higher valuation for its shares.

In Q2 ended 30 September 2002, Bhel reported a 26% drop in net profit to Rs 108.54 crore (Rs 1.08 billion) on a 10.5% fall in sales to Rs 1,289.13 crore (Rs 12.89 billion). Bhel's Q2 results were affected due to an export order of Rs 100 crore (Rs 1 billion) getting held up at the port, which resulted in lower sales.

Meanwhile, as per reports, the power ministry on Tuesday said it will shortly seek the Union Cabinet's approval for introducing the Electricity Bill in Parliament. The ministry had circulated a Cabinet note on the proposed legislation which seeks to do away with the current restrictions on power generators and reform the sector.