Bhel Hits New 1-year High On Buying Support

Mumbai, May 26: | Updated: May 27 2003, 05:30am hrs
Bhel, the state-run electrical equipment maker, hit a fresh one-year high on Monday on buying support from mutual funds and retail investors.

On The Stock Exchange, Mumbai (BSE), Bhel closed up 2.15 per cent, or Rs 5.55, at Rs 263.40 on a volume of 1.44 lakh shares. In intra-day trade, the stock hit a 52-week high of Rs 138.55. With Mondays gain, the stock has rallied over 80 per cent from a low of Rs 144 hit on November 1, 2002.

Dealers said Bhel also rose on rumours that the company may receive a huge order soon and also on market talk that the company expects a double-digit growth in FY 2003-04.

Dealers said alongwith this, the recent announcement by the company of its decision to diversify into power distribution and generation has also been seen as a positive development by market players.

Analysts said that diversification in power distribution and generation will provide Bhel a revenue up to 30-40 per cent of its overall revenue.

The company earlier had said that funds for this diversification was not a problem.

Dealers said the fundamentals of the company will carry the stock higher. To add to that there is talk that the government will disinvest 17 per cent of Bhels equity stake to bring down its holding from 67.7 per cent to 51 per cent.