Shares of Bharat Heavy Electricals Ltd (BHEL) achieved a new record high today, rising 5.45% to Rs 451.65. This surge extended the stock's rally for a fifth consecutive trading session, making it a top performer on the BSE capital goods index. The company's market capitalization climbed to Rs 1.56 lakh crore, with 17.09 lakh shares changing hands, totaling a turnover of Rs 76.23 crore.
What's Driving the BHEL Rally?
The current upward momentum in BHEL shares is attributed to several factors, including strong financial forecasts and favorable technical indicators. JM Financial projects a robust performance for BHEL in the second quarter of the current fiscal year (Q2 FY27).
- Q2 FY27 Projections: JM Financial anticipates BHEL's Q2 profit to surge by 36% year-on-year to Rs 509 crore. Sales are also expected to see a significant 20% year-on-year jump, reaching Rs 9,015 crore.
- Q1 FY27 Performance: In the first quarter of FY27, BHEL reported a consolidated net profit of Rs 376.71 crore, a substantial turnaround from a net loss of Rs 455.50 crore in the same period last year. Revenue from operations grew 40.3% year-on-year to Rs 7,697.72 crore.
Technical Breakout and Analyst Views
Chandan Taparia, Head of Derivatives & Technical Research at Motilal Oswal, highlighted a clear technical breakout for BHEL stock. According to Taparia, the stock has surpassed the Rs 440 zone, breaking out of a multi-week consolidation pattern. He noted that the share price is trading above its 20-day moving average (20-DMA), indicating improved short-term momentum, with the Relative Strength Index (RSI) also showing a sharp upturn.
- Key Technical Levels: Analysts suggest an upside target of Rs 460, with strong support identified between Rs 440 and Rs 435.
Long-Term Performance and Divergent Outlooks
BHEL's stock has demonstrated impressive long-term growth, rising 55% this year, 84% in the past six months, and an astounding 614% over five years. Its beta of 1.15 indicates a higher volatility compared to the broader market. Despite the current rally, not all analysts share the same optimism. Global investment bank Jefferies, for instance, maintains a bearish outlook, expecting the stock to fall to Rs 270 within a year, representing a nearly 40% downside from its current market price.