BHEL shares tumbled 6% today; what's next for this PSU player?
BHEL today informed exchanges that it signed a memorandum of understanding (MoU) with Oil & Natural Gas Corporation Ltd (ONGC) to explore joint projects and collaboration in the area of new and renewable energy business.
- Jan 10, 2025,
- Updated Jan 10, 2025 5:17 PM IST
Bharat Heavy Electricals Ltd (BHEL) shares tanked 5.50 per cent on Friday to settle at Rs 204.50. At this closing value, the stock has edged up 2.45 in the past one year as against a 7.98 per cent rise in benchmark BSE Sensex during the same period.
The state-run firm today informed exchanges that it signed a memorandum of understanding (MoU) with Oil & Natural Gas Corporation Ltd (ONGC) to explore joint projects and collaboration in the area of new and renewable energy business, including fuel cell, electrolyser and battery energy storage system-based projects.
"This MoU will help in contributing towards the country's National Green Hydrogen Mission, as well as leveraging the combined strengths of both organisations for collaborating in emerging areas within the clean energy ecosystem," it stated.
"The collaboration marks a significant step in aligning with India's renewable energy goals and advancing the adoption of clean energy solutions," BHEL added.
Prior to this, the power equipment maker commissioned two units of the 6x170 MW Punatsangchhu-II Hydroelectric Project (PHEP-II) in Bhutan.
Technically, near-term support on the counter could be seen in the 200-190 range. Resistance may be found in the Rs 215-225 zone.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "BHEL is currently in a steep corrective phase. The support zone between Rs 200 and Rs 195 is expected to provide some cushioning for losses, while the range of Rs 215 to Rs 218 is now anticipated to act as intermediate resistance in the near term."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "One can buy BHEL shares at current levels for an expected target price of Rs 225. Keep a strict stop loss placed at Rs 198 for this trade."
Sebi-registered research analyst AR Ramachandran said, "BHEL is bearish yet slightly oversold on daily charts with next support at Rs 191. Investors should buy only if a daily close is above the resistance of Rs 217, which could lead it to an upside target of Rs 236 in the near term."
The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 28.32. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The PSU's stock has a price-to-equity (P/E) ratio of 366.25 against a price-to-book (P/B) value of 3.06. Earnings per share (EPS) stood at 0.59 with a return on equity of 0.84.
Bharat Heavy Electricals Ltd (BHEL) shares tanked 5.50 per cent on Friday to settle at Rs 204.50. At this closing value, the stock has edged up 2.45 in the past one year as against a 7.98 per cent rise in benchmark BSE Sensex during the same period.
The state-run firm today informed exchanges that it signed a memorandum of understanding (MoU) with Oil & Natural Gas Corporation Ltd (ONGC) to explore joint projects and collaboration in the area of new and renewable energy business, including fuel cell, electrolyser and battery energy storage system-based projects.
"This MoU will help in contributing towards the country's National Green Hydrogen Mission, as well as leveraging the combined strengths of both organisations for collaborating in emerging areas within the clean energy ecosystem," it stated.
"The collaboration marks a significant step in aligning with India's renewable energy goals and advancing the adoption of clean energy solutions," BHEL added.
Prior to this, the power equipment maker commissioned two units of the 6x170 MW Punatsangchhu-II Hydroelectric Project (PHEP-II) in Bhutan.
Technically, near-term support on the counter could be seen in the 200-190 range. Resistance may be found in the Rs 215-225 zone.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "BHEL is currently in a steep corrective phase. The support zone between Rs 200 and Rs 195 is expected to provide some cushioning for losses, while the range of Rs 215 to Rs 218 is now anticipated to act as intermediate resistance in the near term."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "One can buy BHEL shares at current levels for an expected target price of Rs 225. Keep a strict stop loss placed at Rs 198 for this trade."
Sebi-registered research analyst AR Ramachandran said, "BHEL is bearish yet slightly oversold on daily charts with next support at Rs 191. Investors should buy only if a daily close is above the resistance of Rs 217, which could lead it to an upside target of Rs 236 in the near term."
The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 28.32. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The PSU's stock has a price-to-equity (P/E) ratio of 366.25 against a price-to-book (P/B) value of 3.06. Earnings per share (EPS) stood at 0.59 with a return on equity of 0.84.