BHEL shares hit 52-week high in early trade; can they scale Rs 225 mark?

Shares of Bharat Heavy Electricals Ltd (BHEL) rose 4% to a fresh 52-week high today. With today’s rally, BHEL stock has clocked multibagger returns of 111% and 126% in six months and year-to-date basis, respectively. In three years, the PSU stock is up 428%. BHEL stock gained 4.33% to Rs 181.65 on BSE. Total 13.78 lakh shares of the firm changed hands amounting to a turnover of Rs 24.62 crore. Market cap of the firm rose to Rs 62,241 crore. 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 86.9, 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.    

Analysts at brokerage Prabhudas Lilladher (PL) said, "We suggest to buy and accumulate BHEL for an upside potential target of Rs 160-190 keeping the stop loss of Rs 107 for the medium-term time frame investment purpose." 

Nuvama Institutional Equities has raised its target price by 50%, from Rs 150 to Rs 225. The scrip is likely to witness an upside by more than 30% from its current levels, according to brokerage. 

“Given macro tailwinds, we factor in BHEL’s OI at about 4.5GW/year (3GW earlier), leading to higher revenues and operating leverage-led EBITDA margin expansion to 6.5%/10% in FY25/26E (from 4.8%/8.4%). We are lifting FY25/26E EPS by 56%/32%," the brokerage said. 

Nuvama said BHEL has already won 3GW of thermal orders in H1FY24. An additional 7.4GW of thermal orders are presently being tendered for (awards by Q4FY24/Q1FY25). BHEL will have 6-7GW of thermal OI and a 50% market share by the end of FY24,  according to projections by the brokerage.  

BHEL is one of the largest engineering and manufacturing companies in India 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 core sectors of economy. 

 

 

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