News

Published: October 10, 2024
Updated: October 10, 2024

BHEL Shares: A Promising Investment with Target Returns of 106% for 2024

Strong Orders Boosting BHEL's Market Position

Bharat Heavy Electricals Limited (BHEL), the state-owned engineering giant, has recently secured a significant contract valued over ₹6,100 crore (excluding GST) for the construction of the 800 MW Sipat Supercritical Thermal Power Project. This contract, awarded by the National Thermal Power Corporation (NTPC), further solidifies BHEL's position in the competitive power generation sector.

Positive Market Trends for BHEL

Despite a minor dip in share price, with BHEL shares opening at ₹271.25 and trading at ₹269.55 as of 9:18 AM on October 11, 2024, technical analysts remain optimistic. Kunal Bothra, a noted market expert, has initiated a BUY recommendation for BHEL stocks, setting a target price of ₹282. He advises a stop-loss point at ₹266 to mitigate potential losses.

Vande Bharat Initiative and Future Growth

BHEL is also involved in the Vande Bharat initiative, having partnered with Titagarh Rail Systems Limited for the manufacture and maintenance of 80 Vande Bharat trainsets. This project is worth approximately ₹24,000 crore, highlighting BHEL’s vital role in India’s expanding railway infrastructure.

Historical Performance and Returns

As a part of the BSE 200, BHEL has shown remarkable historical performance. Over the past year, the stock has appreciated by an impressive 106.75%, with gains of 36.75% year-to-date. Analyzing longer-term trends, BHEL shares have risen by 329.53% over two years and 530.08% over five years. This consistent upward trajectory underscores BHEL’s stability and growth potential.

Dividend Insights

BHEL has a history of providing dividends to its shareholders, announcing a dividend of ₹0.25 in August 2024. Previous years saw dividends of ₹0.40 each in 2022 and 2023, along with ₹0.80 and ₹1.20 in 2019. Currently, BHEL offers a dividend yield of 0.092%, reflecting its commitment to shareholder returns.

With robust orders, a strategic role in national projects, and a solid historical performance, BHEL presents itself as a compelling investment opportunity. Analysts are bullish on the stock, projecting a target price of ₹282, making it a potentially lucrative option for investors looking for solid returns in the coming year. Investors should consider BHEL for its growth potential and consistent performance in the energy sector.