Shares of Bharat Heavy Electricals Ltd (BHEL) rose 4% to a fresh 52 week high today after the defence ministry inked a Rs 2,956-crore deal with the state-run firm to procure 16 upgraded super rapid gun mount (SRGM) and accessories for Indian Navy. The SRGM is a medium caliber anti-missile and anti-aircraft defence weapon system that provides a sustained rate of fire and high accuracy.
BHEL stock gained 3.74% to Rs 162 on BSE. Total 12.92 lakh shares of the firm changed hands amounting to a turnover of Rs 20.64 crore on BSE. Market cap of the firm rose to Rs 55,295 crore. The share has gained 96.60% in one year and risen 98% since the beginning of this year. The stock hit a 52-week low of Rs 66.30 on February 27, 2023.
In terms of technicals, the relative strength index (RSI) of BHEL stock stands at 79.7, signaling it's trading in the overbought zone. BHEL shares are trading higher than the 20 day, 50 day, 100 day and 200 day moving averages.
The ministry said the upgraded SRGMs will be installed onboard Indian Navy's in-service and newly built ships.
"The Ministry of Defence has signed a contract with M/s Bharat Heavy Electricals Limited (BHEL), Haridwar on Nov. 28 for procurement of 16 Upgraded Super Rapid Gun Mount (SRGM) along with associated equipment/accessories for Indian Navy under Buy (Indian) category at a total cost of Rs 2956.89 crore," it said in a statement.
"The weapon system is capable of multiple engagements in multi-threat scenarios and has a proven record of very good performance against missiles and highly maneuverable fast attack crafts," the ministry said.
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