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

BHEL shares

Bharat Heavy Electricals Ltd (BHEL) shares rose 4% today to a new 52-week high. With today’s rally, BHEL stock has now returned 111% and 126% in the last six months and year to date, respectively. The PSU stock has increased 428% in three years. On the BSE, BHEL gained 4.33% to Rs 181.65. A total of 13.78 lakh shares of the company were traded, resulting in a turnover of Rs 24.62 crore. The company’s market capitalization increased to Rs 62,241 crore. On February 27, 2023, the stock reached a 52-week low of Rs 66.30.

In terms of technicals, the BHEL stock’s relative strength index (RSI) is 86.9, indicating that it is trading in the overbought zone. BHEL shares are trading above their 20-, 50-, 100-, and 200-day moving averages.

“We suggest buying and accumulating BHEL for an upside potential target of Rs 160-190 with a stop loss of Rs 107 for the medium-term time frame investment purpose,” analysts at brokerage Prabhudas Lilladher (PL) said.

Nuvama Institutional Equities has increased its target price by 50% to Rs 225. According to brokerage, the stock is likely to rise by more than 30% from its current levels.

BHEL

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

BHEL is one of India’s largest engineering and manufacturing companies, engaged in the design, engineering, construction, testing, commissioning, and servicing of a diverse range of products and services, with over 180 product offerings to meet the ever-increasing needs of the economy’s core sectors.