Bharat Heavy Electricals Ltd (BHEL) experienced a substantial surge in its share price, reaching a 52-week high. The stock soared by 7.32% to touch Rs 93.25, eventually settling 6.99% higher at Rs 92.96. This significant increase indicates a positive market sentiment and investor confidence in the company's prospects.
At the end of the day's trading, BHEL made a total turnover of Rs 30.68 crore, and its market value reached Rs 32,369.26 crore. The trading activity was quite significant, as approximately 33.61 lakh shares were bought and sold on the BSE. This is more than three times the average volume of 10.91 lakh shares observed over the past two weeks.
In the past year, BHEL's stock has turned multibagger, showing an impressive growth of 102.31%. So far this year, the stock has seen a growth of 16.05%. These figures highlight the company's strong performance and investor confidence in its future prospects.
The recent surge in BHEL's share price was fueled by the announcement of an extended Gas Turbines technology agreement with General Electric Technology GmbH Switzerland. BHEL, in collaboration with GE, is a leading market player for Gas Turbines in India. The agreement grants BHEL enhanced rights and access to existing, uprated, and new Gas Turbine models, further strengthening its position in the market.
BHEL stated, "Under this extension agreement, BHEL has gained access and enhanced rights for existing, uprated and new Gas Turbine models. BHEL shall also be able to supply GTs with fuel blends viz. Hydrogen, Methanol, Syngas etc. and in hybrid configuration contributing further towards accelerating the energy transition in India."
Additionally, BHEL appointed Krishna Kumar Thakur as the Human Resources (HR) Director for a period of five years, demonstrating the company's commitment to strengthening its leadership team.
With a 14-day relative strength index (RSI) of 69.92, BHEL's technical setup indicates positive momentum. The stock's price-to-earnings (P/E) ratio is currently at 67.60, indicating value that investors willing to invest on each rupee of earnings. The price-to-book (P/B) value is 1.13, indicating the stock's price in relation to its book value or net assets. The scrip's one-year beta of 1.03 suggests average volatility.
BHEL provides a wide range of products & services for different industries. They deals in designing, engineering, constructing, testing, commissioning, and servicing various solutions. With over 180 product offerings, the company remains committed to meeting the evolving needs of the economy.
While Indian equity benchmarks settled nearly flat, BHEL's remarkable performance indicates its ability to outperform the broader market. Investors are closely watching BHEL's growth trajectory and its efforts to enhance its market position, particularly in the gas turbines segment.