BHEL shares hit fresh 52-week high; here's what Prabhudas Lilladher says
BHEL share price: BHEL rose 3.34 per cent on Monday to scale their fresh one-year high price of Rs 140.65. The stock eventually settled with 1.95 per cent gains at Rs 138.75. The multibagger stock of state-run power firm continued its upward march for the sixth straight session. The counter has ascended by 129.53 per cent in the past one year.
- Sep 4, 2023,
- Updated Sep 4, 2023 6:23 PM IST
Shares of Bharat Heavy Electricals Ltd (BHEL) rose 3.34 per cent on Monday to scale their fresh one-year high price of Rs 140.65. The stock eventually settled with 1.95 per cent gains at Rs 138.75. The multibagger stock of state-run power firm continued its upward march for the sixth straight session. The counter has ascended by 129.53 per cent in the past one year.
Today's fresh up move came on the back of new order win. The company, in an exchange filing, said it has won a prestigious order for country's largest capacity hydro project (2,880 MW Multipurpose Project) against international competitive bidding (ICB). "The order for the 12x240 MW project located in Roing in the Lower Dibang Valley district of Arunachal Pradesh, has been placed on the company by NHPC," it stated.
Major equipment for the project will be manufactured by BHEL's plants at Bhopal, Bengaluru, Jhansi and Rudrapur, while the execution activities on-site will be carried out by the company's power sector - eastern region division, Kolkata, it further mentioned.
Brokerage Prabhudas Lilladher (PL), in its commentary, said, "We await order size details. However, execution time frame for this project is likely to be longer duration (9-10 years)."
"We believe, pickup in thermal power orders and focus on diversification in segments such as railways, defence, nuclear, hydro augurs well for company in the long term," it stated.
The company has recently secured an order from NTPC for setting up the 2x800 MW supercritical thermal power project at Lara in Chhattisgarh through ICB. This was in addition to Rs 2,242-crore order from NHPC and Rs 4,000 crore order from an Adani Power arm (Mahan Energen Ltd, erstwhile Essar Power MP).
On the stock-specific front, PL said BHEL is currently trading at PE (Price Earnings) of 53.7x/30.5x FY24/25E. The domestic brokerage has given a 'Reduce' call and suggested a lower target price of Rs 67.
A technical analyst said support on the counter could be seen at Rs 129.
"The stock is bullish but also overbought on the daily charts with next resistance at Rs 143. Investors should book profits at current levels as a close below support of Rs 129 could lead to target of Rs 103 as well in the near term," said AR Ramachandran from Tips2trades.
"BHEL's breakout from its long-standing upward-sloping channel with heavy volumes is a significant development since January 2023. However, caution is warranted as the RSI (Relative strength index) indicator signals an overbought condition. For existing positions, consider implementing a trailing stop loss at Rs 122 to protect gains while monitoring market conditions closely," said Kush Ghodasara, independent market expert, CMT.
(Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.)
Shares of Bharat Heavy Electricals Ltd (BHEL) rose 3.34 per cent on Monday to scale their fresh one-year high price of Rs 140.65. The stock eventually settled with 1.95 per cent gains at Rs 138.75. The multibagger stock of state-run power firm continued its upward march for the sixth straight session. The counter has ascended by 129.53 per cent in the past one year.
Today's fresh up move came on the back of new order win. The company, in an exchange filing, said it has won a prestigious order for country's largest capacity hydro project (2,880 MW Multipurpose Project) against international competitive bidding (ICB). "The order for the 12x240 MW project located in Roing in the Lower Dibang Valley district of Arunachal Pradesh, has been placed on the company by NHPC," it stated.
Major equipment for the project will be manufactured by BHEL's plants at Bhopal, Bengaluru, Jhansi and Rudrapur, while the execution activities on-site will be carried out by the company's power sector - eastern region division, Kolkata, it further mentioned.
Brokerage Prabhudas Lilladher (PL), in its commentary, said, "We await order size details. However, execution time frame for this project is likely to be longer duration (9-10 years)."
"We believe, pickup in thermal power orders and focus on diversification in segments such as railways, defence, nuclear, hydro augurs well for company in the long term," it stated.
The company has recently secured an order from NTPC for setting up the 2x800 MW supercritical thermal power project at Lara in Chhattisgarh through ICB. This was in addition to Rs 2,242-crore order from NHPC and Rs 4,000 crore order from an Adani Power arm (Mahan Energen Ltd, erstwhile Essar Power MP).
On the stock-specific front, PL said BHEL is currently trading at PE (Price Earnings) of 53.7x/30.5x FY24/25E. The domestic brokerage has given a 'Reduce' call and suggested a lower target price of Rs 67.
A technical analyst said support on the counter could be seen at Rs 129.
"The stock is bullish but also overbought on the daily charts with next resistance at Rs 143. Investors should book profits at current levels as a close below support of Rs 129 could lead to target of Rs 103 as well in the near term," said AR Ramachandran from Tips2trades.
"BHEL's breakout from its long-standing upward-sloping channel with heavy volumes is a significant development since January 2023. However, caution is warranted as the RSI (Relative strength index) indicator signals an overbought condition. For existing positions, consider implementing a trailing stop loss at Rs 122 to protect gains while monitoring market conditions closely," said Kush Ghodasara, independent market expert, CMT.
(Disclaimer: Recommendations provided in this article and/ or any reports attached or relied on herein are authored by an external party. The views expressed herein are those of the respective authors/ entities, and do not represent the views of Business Today (BT). BT does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. BT further urges you to consult your financial adviser and seek independent advice regarding the contents herein, including stock investments, mutual funds, general market risks etc.)