⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BHEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | BHEL | Market Cap | 94,851 Cr. | Current Price | 273 ₹ | High / Low | 306 ₹ |
| Stock P/E | 119 | Book Value | 71.2 ₹ | Dividend Yield | 0.18 % | ROCE | 4.75 % |
| ROE | 2.00 % | Face Value | 2.00 ₹ | DMA 50 | 268 ₹ | DMA 200 | 254 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 1.08 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 368 Cr. |
| RSI | 54.4 | MACD | -3.84 | Volume | 89,26,852 | Avg Vol 1Wk | 94,60,951 |
| Low price | 176 ₹ | High price | 306 ₹ | PEG Ratio | 16.5 | Debt to equity | 0.44 |
| 52w Index | 74.3 % | Qtr Profit Var | 207 % | EPS | 2.30 ₹ | Industry PE | 40.7 |
📊 BHEL has shown strong price recovery and institutional support, but fundamentals remain weak with stretched valuations. It can be considered for swing trading with caution, especially near support levels.
💡 Optimal Entry Price: 260–265 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 300–305 ₹ (recent high resistance) or if RSI moves above 65, signaling overbought conditions.
✅ Positive
- Market cap of 94,851 Cr. reflects strong investor interest.
- Quarterly PAT growth of 207% shows earnings recovery momentum.
- DII holdings increased (+1.08%), indicating domestic institutional confidence.
- Stock trading above 50 DMA (268 ₹) and 200 DMA (254 ₹), showing bullish support.
⚠️ Limitation
- Extremely high P/E ratio (119) compared to industry average (40.7), suggesting overvaluation.
- Weak ROCE (4.75%) and ROE (2.00%) indicate poor capital efficiency.
- PEG ratio of 16.5 highlights expensive growth prospects.
- Dividend yield of 0.18% is very low, limiting investor returns.
📉 Company Negative News
- Fundamentals remain weak despite profit recovery, with low ROE and ROCE.
- Debt-to-equity ratio of 0.44 adds financial risk compared to peers.
- MACD at -3.84 indicates weakening momentum.
📈 Company Positive News
- PAT improved from 368 Cr. to 382 Cr., showing earnings growth.
- FII holdings increased slightly (+0.05%), reflecting foreign investor interest.
- DII holdings rose significantly (+1.08%), strengthening domestic support.
🏭 Industry
- Power and engineering sector benefits from infrastructure and government projects.
- Industry PE at 40.7 is much lower than BHEL’s valuation, showing premium pricing.
🔎 Conclusion
BHEL is a momentum-driven swing trade candidate with strong institutional support but weak fundamentals and stretched valuations. Entry near 260–265 ₹ is favorable, with exit around 300–305 ₹. Traders should monitor RSI, MACD, and institutional flows closely before committing.