BHEL shares jump 6% today; can the stock revisit 52-week high level?

Shares of Bharat Heavy Electricals Ltd (BHEL) resumed climb in Monday's trade after a single-day hiatus. The stock jumped 5.62 per cent to hit a day high of Rs 136.20 over its previous close of Rs 128.95. At today's high price of Rs 136.20, the scrip was down 8.56 per cent from its one-year high of Rs 148.95, a level seen on September 11 this year. Despite the mentioned drop, the counter has turned into a multibagger by rallying 105.43 per cent from its 52-week low of Rs 66.30, hit on February 27, 2023.

The state-run power generation equipment manufacturer reported a net loss of Rs 238 crore in the September quarter of 2023-24 (Q2 FY24) against a profit of Rs 12 crore in the year-ago period. BHEL's revenue slipped 1.5 per cent to Rs 5,125.3 crore in the September quarter against Rs 5,202.6 crore in the corresponding period last year.

In power segment, the PSU reported a 3 per cent rise in its consolidated revenue, at Rs 3,927.18 crore, during Q2 FY24 against Rs 3,814.35 in September FY23.

On technical setup, analysts largely remained positive on the counter. Support could be seen at Rs 128.7, followed by Rs 107 level.

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."

AR Ramachandran from Tips2trades said, "BHEL looks bullish on daily charts and a close above resistance of Rs 134 could lead to a target of Rs 149 in the near term. Strong support will be at Rs 128.7."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 63.15. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 1019.79 against a price-to-book (P/B) value of 1.69.

The scrip has an analyst target price of Rs 89, Trendlyne data showed, suggesting a potential downside of 33 per cent in a year. It has a one-year beta of 1.29, indicating high volatility on the counter.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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