BHEL Shares Surge 6 Percent to Reach 52-Week High on ₹19,422-Crore Contract Win

BHEL Shares Surge 6 Percent to Reach 52-Week High on ₹19,422-Crore Contract Win

VoM News Desk | January 1, 2024 | 08:45 PM IST | Breaking News | Follow on Google News

BHEL Shares Surge 6 Percent to Reach 52-Week High on ₹19,422-Crore Contract Win

BHEL Shares Surge 6 Percent to Reach 52-Week High on ₹19,422-Crore Contract Win

Bharat Heavy Electricals Limited (BHEL) experienced a substantial uptick, with its share price climbing nearly 6% to hit a new 52-week peak at ₹205 on the NSE on Monday. This surge comes on the heels of a noteworthy development—BHEL, a state-owned engineering firm, has clinched the top bidder position for a significant turnkey contract valued at ₹19,422 crore. The said contract pertains to the establishment of a thermal power plant for NLC India in Talabira, Odisha.

A recent report by Hindu Business Line unveiled that BHEL outpaced L&T-MHI to emerge as the foremost bidder post the revelation of financial bids last Friday.

The contract involves BHEL constructing three ultra supercritical units, each having an 800 MW capacity, for NLC India at Talabira. The report additionally hinted at the inclusion of a fourth 800 MW unit in the project, although it remains uncertain whether a separate tender will be issued for this unit.

Trading volumes for BHEL surged, with over 6 crore shares traded on the NSE by around 1:30 pm, reflecting a traded value of ₹1,220.57 crore.

While the stock’s rise has been remarkable—registering over 150% returns in the last year—it’s currently in an overbought zone. Momentum indicators such as RSI and MFI, standing at 70.6 and 76.4 respectively, indicate this situation, with numbers above 70 signaling an overbought condition.

BHEL’s performance surpasses the Nifty’s, as the stock trades above both its 50-day and 200-day simple moving averages (SMAs). Furthermore, it’s an actively traded stock in the Futures and Options (F&O) segment, displaying relatively low volatility with a 1-year beta of 0.2. Additionally, the Market Wide Position Limit (MWPL) for BHEL reached 81.7% on Friday, with an Open Interest (OI) of 103.9 million, indicating a 4% rise from the previous session.

VoM News Desk

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