BHEL Shares Rally 14% to Hit 52-Week High; Know Why It Is Rising Today?

Shares of Bharat Heavy Electricals Limited (BHEL) surged over 14 per cent to hit an over eight-year high of Rs 269.35 on the National Stock Exchange (NSE) amid heavy volumes on Monday morning.

The stock of the integrated power plant equipment manufacturer surpassed its previous high of Rs 243.30 touched on February 5, 2024. It is trading at its highest level since August 2015.

The stock is rising after the board of another state-run peer NTPC approved an investment worth Rs 17,195.3 crore for the third phase of the Singrauli Super Thermal Power Project. This project is said to be of 2×800 MW.

BHEL’s order book at the end of the first half of financial year 2024 stood at Rs 1.14 lakh crore, while order inflow till the first half was Rs 33,000 crore.

Shares of the state-run capital goods company had crossed the v200 mark after reports had suggested that the company has been awarded the Talabira Power Project worth v19,422 crore.

The company officially disclosed on January 15 that it NLC India had awarded it the Talabira Project, although the size of the project was Rs 15,000 crore.

Out of the 19 analysts that track BHEL, five of them have a “buy” recommendation, three say “hold,” but 11 of them continue to maintain a “sell” or equivalent rating on the stock.

ICICI Securities, which has the highest price target on the street for BHEL at Rs 300, believes that the company’s order wins in financial year 2024 will cross Rs 65,000 crore.

However, Jefferies, which has an underperform rating with a price target of Rs 90 says that competitive pressure will impact margins and that it prefers to play this theme through other companies.

Shares of BHEL are now trading 13.1% higher at Rs 267.1. This is the biggest single-day gain for the stock since May 2021. The stock has risen 256% over the last 12 months. Despite the surge, the stock remains 31% below its record high of Rs 390.67, which it had it in 2007.