BHEL begins traction transformer supply for Vande Bharat; stock up 32% in a year; what lies ahead?

Shares of Bharat Heavy Electricals Ltd (BHEL) ended 0.64 per cent higher at Rs 267.25 on Wednesday. At this level, the stock has gained 32.20 per cent over the past one year. The state-owned firm informed exchanges that it has reached an important milestone under its Make in India initiative for the rail transportation sector by commencing the supply of underslung traction transformers for the Vande Bharat Sleeper Train project. The project is being executed by a BHEL-led consortium in partnership with TRSL.

The company said the development strengthens BHEL's strategic foray into the semi-high-speed propulsion segment, with trains designed to operate at speeds of up to 160 kmph and a design capability of 180 kmph. The traction transformers are being dispatched to Kolkata for final assembly of the Vande Bharat Sleeper trains. Additionally, another critical propulsion component -- the traction motor -- has been developed and manufactured at BHEL's Bhopal unit.

Separately, BHEL stated that its Jhansi unit has secured an order for Rail Borne Maintenance Vehicles (RBMV). The project falls under the specialised rolling stock segment of railway infrastructure, highlighting the unit’s expanding presence beyond traditional rolling stock applications.

Select analysts largely remain cautiously optimistic on BHEL, recommending a 'Hold' strategy. The stock has strong support in the Rs 264–245 range, while a breakout above Rs 285–295 could revive upside momentum. And, A fall below key support levels may warrant caution.

BHEL could encounter some near- to medium-term challenges; however, investors are advised to continue holding the stock, said Kranthi Bathini, Director – Equity Strategy at WealthMills Securities.

Nilesh Jain, Assistant Vice-President – Derivative and Technical Research at Centrum Broking, highlighted that the stock has a strong support at Rs 255. A breach below this level could drag it towards Rs 245, and investors should maintain strict stop losses. He added that once the market stabilises, BHEL could rebound sharply towards the Rs 270–280 range.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that near-term support lies in the Rs 255–245 zone. On the upside, a move beyond Rs 290–295 could negate the cautious outlook and help the stock resume its upward trend in the coming sessions.

Drumil Vithlani, Technical Analyst at Bonanza, said BHEL remains in a hold zone as the broader trend continues to form higher highs and higher lows above a rising trendline. While the stock is consolidating near the Rs 275–280 resistance, the intermediate trend remains positive. As long as prices stay above Rs 264, the bullish bias holds. A decisive breakout above Rs 285–290 could trigger further upside, whereas a close below Rs 264 would weaken the structure and call for reassessment.