Know Why BHEL Shares Are Rising Today as They Rise 14% to Reach 52-Week High?

In strong trading on Monday morning, shares of Bharat Strong Electricals Limited (BHEL) rose more than 14% to reach a high of Rs 269.35, over eight years, on the National Stock Exchange (NSE).

The maker of integrated power plant equipment saw its shares rise over the previous high, which was reached on February 5, 2024, at Rs 243.30. Since August 2015, the trade level has reached its peak.

Following the board of another state-run counterpart, NTPC, approving an investment of Rs 17,195.3 crore for the third phase of the Singrauli Super Thermal Power Project, the shares of that company are on the rise. The estimated size of this project is 2×800 MW.

At the conclusion of the first half of the 2024 fiscal year, BHEL had Rs 1.14 lakh crore in order backlog, compared to Rs 33,000 crore in order inflow over the same period.

Following rumors that the state-run capital goods business had been granted the v19,422 crore Talabira Power Project, its shares had surpassed the 200 mark.

Despite the project’s Rs 15,000 crore cost, the business formally revealed on January 15 that NLC India had granted them the Talabira Project.

Eleven of the 19 analysts that follow BHEL have maintained a “sell” or comparable rating on the company, while three have recommended “hold.” Five of the analysts have recommended “buy.”

With a price objective of Rs 300, the highest on the market for BHEL, ICICI Securities predicts that the business would get orders worth over Rs 65,000 crore in the 2024 fiscal year.

Nonetheless, Jefferies, which has an underperform rating and a price target of Rs 90, claims that margins would be impacted by competitive pressure and that it would rather leverage this theme via other businesses.

At Rs 267.1, BHEL’s shares are now trading 13.1% higher. Since May 2021, this is the stock’s largest one-day rise. The stock has increased by 256% in the last year. The stock is still 31% behind its all-time high of Rs 390.67, which it reached in 2007, even with the recent increase.