Bharat Heavy Electricals Limited (BHEL) witnessed a significant upswing in its shares, soaring over 13% to achieve a 52-week high of Rs 269.35. This surge marks a continuation of BHEL’s impressive performance, with shares up over 17% in the last five trading sessions and nearly 13.5% in the past month. As the company’s stocks have gained 34.5% year-to-date (YTD) and over 92% in the last six months, we delve into the factors contributing to this remarkable ascent.
Factors Behind BHEL’s Soaring Shares
1. NTPC’s Investment Approval:
- NTPC’s green light for an investment exceeding Rs 17,195 crore in the third phase of the Singrauli Super Thermal Power Project has played a pivotal role in boosting BHEL’s shares. Notably, BHEL stood as the exclusive bidder for the construction of the Singrauli plant.
2. Talabira Thermal Power Project Win:
- BHEL’s shares received a significant boost earlier in the year when it secured the Talabira Thermal Power project from NLC India, valued at Rs 15,000 crore. This strategic win contributed to the positive trajectory of the company’s stock.
3. Consistent Growth Performance:
- BHEL’s shares have been on a consistent upward trajectory, gaining 34.5% on a year-to-date basis and an impressive 92% in the last six months. This sustained growth has attracted investor confidence and contributed to the overall surge in stock value.
Analyst Ratings and Market Sentiment
As of the latest update, out of the 19 analysts tracking BHEL’s stock, five have assigned a ‘buy’ rating, while three recommend a ‘hold.’ However, a significant majority maintains a ‘sell’ rating on the stock despite its recent surge. The varied analyst perspectives indicate a mixed sentiment regarding the future trajectory of BHEL shares.
The ongoing positive developments in BHEL’s projects and investments have clearly played a crucial role in elevating its stock performance. Investors and analysts will be closely monitoring the company’s strategic moves and project executions to gauge its sustainability in the market.
