Rs 59 to Rs 119: Multibagger BHEL shares zoom 100% in a year; is upside capped for now?

Shares of Bharat Heavy Electricals Ltd (BHEL) on Wednesday scaled their new one-year high level. The stock jumped 4.19 per cent to hit a 52-week high of Rs 119.45 against its previous close of Rs 114.65. It eventually settled 3.49 per cent higher at Rs 118.65. At today's closing price, the multibagger stock of state-run power firm has rallied around 100 per cent in the past one year. It was seen at around Rs 59 level on August 30 last year.

The company, in a post market hours exchange filing, said it has secured an order from NTPC to set up a 2x800 MW Supercritical Thermal Power Project Stage-II at Lara in Chhattisgarh.

Technical analysts largely remained mixed on the counter. Support could be seen at Rs 107 level.

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."

Market expert Ravi Singh said, "BHEL stock price is on a bull run. We may see a target of Rs 120 level in coming trading sessions."

AR Ramachandran from Tips2trades said, "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, "The stock has been riding an upward trend channel since March. 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."

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 71.50. 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 138.75 against a price-to-book (P/B) value of 1.49.

The scrip has an analyst target price of Rs 68, Trendlyne data showed, suggesting a potential downside of 43 per cent. It has a one-year beta of 1.05, indicating average low on the counter.

BHEL is engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the economy.

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