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BHEL Stock Complete Analysis | If You Are An Investor, Need To Know This | Checkout Here Now


BHEL Complete Stock Analysis | BHEL Fundamental Analysis | BHEL Technical Analysis | BHEL Stock Analysis
Bharat Heavy Electricals Limited - BHEL

Part 1 - Fundamental Analysis


Introduction


Bharat Heavy Electricals Limited (BHEL) is the largest engineering and manufacturing enterprise in India in the energy-related / infrastructure sector. In addition to the power generation equipment , the company`s products cater to a wide spectrum of customers encompassing various fields of operation, like Fertilisers & Petrochemicals, Refineries, Oil Exploration and Production, Steel and Metals, Cement, Sugar and Paper Plants, Transportation and Non-conventional energy sources etc. The company`s operations are organised around three business sectors, namely Power, Industry - including Transmission, Transportation, Telecommunication & Renewable Energy - and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market. The company`s products includes Power, Air Preheaters, Boilers, Control Relay Panels, Electrostatic Precipitators, Fabric Filters, Gas Turbines, Hydro Power Plant, Pulverizers, Turbo Generators, etc. The company is also engaged in the business of Power, Industry.


Strengths


Weaknesses


Opportunities


Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.


According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at US$ 25.78 billion and US$ 17.22 billion, respectively, between April 2000 and September 2020.


In Union Budget 2021, the government has given a massive push to the infrastructure sector by allocating Rs. 233,083 crore (US$ 32.02 billion) to enhance the transport infrastructure. The government expanded the ‘National Infrastructure Pipeline (NIP)’ to 7,400 projects. ~217 projects worth Rs. 1.10 lakh crore (US$ 15.09 billion) were completed as of 2020.


The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure from 2018-30.


India and Japan have joined hands for infrastructure development in India's Northeast states and are also setting up an India-Japan Coordination Forum for Development of Northeast to undertake strategic infrastructure projects for the region.


Key Positions of BHEL


Management

  • Promoters

Government of India

  • Chairman & Managing Director

Nalin Shinghal, leads the position of Chairman & Managing Director of BHEL.

  • Director

S Balakrishnanand Kamalesh Das, serves as the Director of BHEL.


Shareholding Pattern as on 31st December, 2020

BHEL Shareholding Pattern | BHEL Stock Shareholding
Shareholding Pattern - BHEL

Returns on Share


52 Week Higher Level: 76.60 INR


52 Week Lower Level: 21.40 INR


Peers


Bharat Elec, AIA Engineering, Thermax, GMM Pfaudler, etc.



Part 2 – Technical Analysis


BHEL Technical Chart | BHEL Daily Chart | BHEL Technical Analysis
BHEL Daily Chart

The above image shows the Daily chart of BHEL along with 5, 13 and 26 Days Exponential Moving Averages (EMA), Moving Averages Convergence-Divergence (MACD), Relative Strength Index (RSI) and Bollinger Bands (BB).


During the May, 2019 period the stock had hit a high of INR 70.10, since then down move is seen in the stock. As of May, 2021 it has again sustained to hit the level of May, 2019.


During the period a Cup and Handle formation is seen in the Daily chart of BHEL with an upside breakout at around 56 INR which can be concluded as a sign of bullishness.


Currently, 76 and 56 levels are acting as resistance and support levels for the stock.


Indicators


1. 5, 13 and 26 Days Exponential Moving Averages (EMA)

In recent times, 5 DEMA has able to cut 13 & 26 DEMA from below since then an up move is being seen in the stock price.


2. Moving Averages Convergence-Divergence (MACD)

MACD which is considered as a leading indicator, has also crossed the Signal line from below, MACD is also in favor of the stock.


3. Bollinger Bands (BB)

In some last days, the stock is moving with upper Bollinger Band, which signals as there could correction be seen in upcoming days. It’s good for shorting opportunities while to buy for medium as well as long term, waiting for some duration could be profitable.


4. Relative Strength Index (RSI)

The RSI of BHEL stock is roughly around 78, which signals the stock is in an overbought zone. Waiting for couple of days for medium term investors will be well. While shorting opportunities would be available.


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