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Published: December 7, 2023
Updated: December 7, 2023

BHEL's Soaring Performance Sparks Investor Optimism as shares hit fresh 52 week high

Bharat Heavy Electricals Ltd (BHEL) has experienced a significant surge, reaching a fresh 52-week high and capturing investor attention. The company's shares gained 4.33%, reaching Rs 181.65 on the BSE, reflecting a remarkable multibagger return of 111% in six months and 126% year-to-date.

Impressive Market Cap Growth:

BHEL's market capitalization has risen to Rs 62,241 crore, a noteworthy achievement attributed to its robust performance. The total turnover on the BSE amounted to Rs 24.62 crore, with 13.78 lakh shares changing hands.

Technical Indicators:

The technical landscape for BHEL is compelling, with shares trading above the 20-day, 50- day, 100-day, and 200-day moving averages. However, caution is advised as the relative strength index (RSI) stands at 86.9, signalling an overbought zone.

Analyst Recommendations:

Analysts at suggest buying and accumulating BHEL, targeting an upside potential of Rs 160-190. Nuvama Institutional Equities is even more bullish, raising its target price by 50% to Rs 225. The firm anticipates a significant upside of over 30% from the current levels.

Future Projections:

Experts projects positive growth for BHEL, factoring in an Order Intake (OI) of about 4.5GW/year. This, coupled with macro tailwinds, is expected to drive higher revenues and margin expansion. The brokerage adjusts EPS estimates, anticipating a substantial increase in the coming years.

Strategic Wins and Market Presence:

Highlighting BHEL's success, Nuvama reveals that the company has already secured 3GW of thermal orders in H1FY24. With an additional 7.4GW being tendered for awards in Q4FY24/Q1FY25, BHEL is positioned to command a 50% market share in thermal OI, reaching 6-7GW by the end of FY24.

BHEL's Diverse Offerings:

As one of India's largest engineering and manufacturing companies, BHEL's diverse portfolio encompasses design, engineering, construction, testing, commissioning, and servicing. With over 180 product offerings, the company caters to the evolving needs of various core sectors in the economy.

The Shining PSU stock:

BHEL's remarkable performance, coupled with positive market sentiment and strategic wins, paints a promising picture for the company's future. Investors are advised to carefully consider the evolving dynamics and expert recommendations when making informed decisions in this dynamic market scenario.