Shares of the multi-bagger state-owned company have been rocking since last year, after a Rs 10,000-crore contract was bagged, now…

New Delhi. What is written in the headline is absolutely correct. This state-owned company is one of India’s elite companies. Of course the bullet train hasn’t started yet in India but it’s moving faster than a stock bullet. This stock has given multi-bagger returns for the past one year. Investors’ money is extended as if it were a note printing machine. Recently this company got a big contract. It is then understood that its shares can now move at a faster pace.

The company name we are talking about is BHEL. Shares of Bharat Heavy Electrical Ltd are rising as the public sector unit (PSU) has bagged a contract from Damodar Valley Corporation (DVC) to set up 2×800 MW Koderma Phase-II Thermal Power Station at Koderma (Jharkhand). The contract is worth Rs 10,000 crore.

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On Monday (July 29, 2024), shares of BHEL closed at Rs 323.15 with a gain of 1.86% on the BSE. The stock touched a 52-week low of Rs.94.80 on August 7, 2023 and a 52-week high of Rs.335.40 on July 9, 2024. The stock of this PSU company has gained 213% in the last one year and has a 60% gain in 2024.

What is the situation in technical analysis?
A report by India Today has given the information based on its technical analysis. It has been written that BHEL shares are neither in the overbought zone nor in the oversold zone. Its Relative Strength Index (RSI) is at 55.3. The stock is trading above its 5-day, 10-day, 20-day, 50-day, 100-day and 200-day moving averages. BHEL has beta of 1.6, which indicates high volatility. The market cap of the company has reached Rs 1.10 lakh crore.

BHEL has received LoI (Letter of Intent) from DVC to set up Koderma Phase-II Thermal Power Station on EPC (Engineering, Procurement, and Construction) basis. The project includes supply of boilers, turbines, generators and associated auxiliary equipment as well as electrical and control and instrumentation (C&I) systems and plant packages. BHEL will also be responsible for the construction, commissioning and civil works of this power station. The project is to be completed within 52 months and the total cost is estimated to be over Rs 10,000 crore. This price is exclusive of taxes and charges.

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