BHEL shares jump 85% in a year; time to book profit or more upside possible?

Shares of Bharat Heavy Electricals Ltd (BHEL) have gained 84.51 per cent in the last one year. The stock has jumped 58.09 per cent in six months and 32.33 per cent in 2023 so far. On Friday, the scrip was last seen trading 1.49 per cent down at Rs 106. At this price, it was trading 6.48 per cent lower from its 52-week high price of Rs 113.35, hit a couple of sessions back on August 23. That said, it was up 98.50 per cent from its one-year low price of Rs 53.40, a level seen on August 25 last year.

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 59.24. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 130.22 against a price-to-book (P/B) value of 1.40.

The scrip has an analyst target price of Rs 68, Trendlyne data showed, suggesting a potential downside of 36 per cent. It has a one-year beta of 1, indicating average low on the counter.

Analysts largely remained mixed on the counter. The stock may see a target of Rs 120 in the near term, an analyst said. Support could be seen at Rs 107 level. That said, if it settles below the said support level, then it may slip more, one of them suggested.

Mileen Vasudeo, Senior Technical Research Analyst at Arihant Capital Markets told BT TV, "Traders can buy BHEL with a stop loss of Rs 103 for targets between Rs 127 and Rs 135 levels to an outer extent of Rs 144 in few days."

Market expert Ravi Singh said, "BHEL stock price was on a bull run after the company received order worth Rs 4,000 from Adani Power Ltd. The stock trend is well supported by the technical parameters too. The RSI and MACD are in buy zone and the MAs are trading below the stock price. We may see a target of Rs 120 levels in coming trading sessions."

The state-run power firm has recently bagged an order from Mahan Energen Ltd, erstwhile Essar Power MP, a wholly-owned subsidiary of Adani Power.

AR Ramachandran from Tips2trades said, "BHEL is bearish and overbought on the daily charts with strong resistance at Rs 113. A daily close below support of Rs 107 could lead to target of Rs 97 as well in the near term."

Kush Ghodasara, independent market expert, CMT, said, "Th stock has been riding an upward trend channel since March. Anticipating profit booking around Rs 101 level before a potential new high. Prudent approach would be considering fresh positions on a dip, rather than at current levels."

VLA Ambala, research analyst at Stock Market Today, said, "The counter may witness profit booking. Those who want to hold it should keep a stop loss placed at Rs 94."

Also read: Hot stocks on August 25, 2023: Brightcom Group, Jio Financial, Texmaco Rail, Vodafone Idea and more

Also read: RIL shares in focus as firm may sell 8-10% additional stake in Reliance Retail: Report