Bharat Heavy Electricals Limited (BHEL) is an Indian central public sector undertaking and the largest government-owned power generation equipment manufacturer that produces a wide range of products and services, including power generation equipment, industrial equipment, and transportation equipment.
BHEL stock has performed exceptionally well in 2023, rising by more than 100% in just seven months, between March and September 2023. This strong performance has been driven by a number of factors, including:
- The recovery of the Indian economy: The Indian economy is expected to grow at good pace, according to the IMF. This strong growth is expected to boost demand for BHEL’s products and services.
- The government’s focus on infrastructure: The Indian government is investing heavily in infrastructure development. This is expected to create significant opportunities for BHEL, as the company is a major supplier of power generation equipment and other infrastructure products.
- BHEL’s own turnaround: BHEL has been undergoing a turnaround in recent years. The company has improved its profitability and reduced its debt levels. This has made the stock more attractive to investors.
The Indian government has also stated that it aims to make India one of the top three economies in the world in the coming years. This is likely to benefit BHEL, as the company is well-positioned to meet the growing demand for power generation and industrial equipment in India.
BHEL Stock Weekly Price Chart
The weekly price chart of BHEL stock shows that the stock has been in a strong uptrend since the beginning of 2023. The stock has broken out of its previous resistance levels.
The following are some key technical observations from the chart:
- Price action: The stock has broken out of its previous resistance level at ₹120.00 and is now trading at a new all-time high. This suggests that the stock is in a strong uptrend.
- Moving averages: The stock’s moving averages are all sloping upwards, which is another bullish signal.
- RSI: The RSI is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is around 70.00, which suggests that the stock is slightly overbought. However, the RSI is still well below the 90.00 level, which suggests that the stock is not yet overheated
Additional Things to Consider
Here are some additional things to consider before investing in BHEL stock:
- BHEL’s financial performance: BHEL’s financial performance has been improving in recent years. However, the company still faces some challenges, such as high debt levels and competition from private sector companies.
- BHEL’s management team: BHEL has a new management team in place. The new team is focused on improving the company’s profitability and efficiency.
- The Indian government’s policies: The Indian government’s policies on the power sector and infrastructure development are likely to have a significant impact on BHEL’s performance.
For investors exploring opportunities in the Indian economy, infrastructure, and government support, BHEL’s impressive growth and these underlying factors make it a noteworthy consideration. However, due diligence and individual financial goals should guide investment decisions.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
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