In less than two months, BHEL share price has rallied 52.6 per cent from its 52-week low level. BHEL stock is still 61 per cent off from its 52-week high of Rs 75.50 hit in June last year
BHEL share price surged as high as 10 per cent to Rs 29.30 apiece on BSE in an otherwise Thursday’s weak trade. In less than two months, BHEL share price has rallied 52.6 per cent from its 52-week low level. Last month, Bharat Heavy Electricals Ltd (BHEL) invited expression of interest (EOI) from foreign companies to use its currently idle factories, in an attempt to encourage PM Narendra Modi’s ‘Make in India’ program. However, BHEL stock is still 61 per cent off from its 52-week high of Rs 75.50 hit in June last year. In yesterday’s trade, BHEL shares soared over 23 per cent to close at Rs 26.65 (as compared to Rs 21.55 as of Tuesday’s close).
Around 2.15 PM, BHEL share price was trading at Rs 27.75 apiece, up 4.13 per cent. Foreign research and brokerage firm CLSA has given a ‘buy’ rating to the stock. “BHEL could emerge as an engineering R&D services provider, a contract manufacturer, or a lessor of urban-area industrial land,” CLSA said. “This could be a test case of a central public sector enterprise monetizing its assets to unlock value vs government divestment. Success should determine the extent of stock relating to its asset value,” it added.
BHEL is also offering its 14,000-acre land bank available in major cities, industrial clusters and demand centres for a range of purposes like setting up manufacturing facilities, hospitals and smart cities. “Just when global majors are looking to diversify their supply chains, BHEL has floated expressions of interest to woo international companies to set up manufacturing in India. This should help the company monetise its assets,” CLSA said. It further added saying that with manufacturing facilities across India and highly skilled and experienced manpower, BHEL is well-positioned for manufacturing, servicing and more.
Meanwhile, Indian share market was trading nearly 3 per cent lower on Thursday. BSE Sensex tanked 890 points or 2.78 per cent to 31,118.02, while the broader Nifty 50 index tumbled 244 points or 2.60 per cent at 9,139.95.