BHEL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | BHEL | Market Cap | 1,44,070 Cr. | Current Price | 414 ₹ | High / Low | 425 ₹ |
| Stock P/E | 91.3 | Book Value | 76.2 ₹ | Dividend Yield | 0.12 % | ROCE | 8.35 % |
| ROE | 6.11 % | Face Value | 2.00 ₹ | DMA 50 | 370 ₹ | DMA 200 | 303 ₹ |
| Chg in FII Hold | 0.95 % | Chg in DII Hold | 4.23 % | PAT Qtr | 1,283 Cr. | PAT Prev Qtr | 382 Cr. |
| RSI | 62.7 | MACD | 5.13 | Volume | 2,31,91,042 | Avg Vol 1Wk | 1,24,29,553 |
| Low price | 205 ₹ | High price | 425 ₹ | PEG Ratio | 2.40 | Debt to equity | 0.31 |
| 52w Index | 95.0 % | Qtr Profit Var | 154 % | EPS | 4.53 ₹ | Industry PE | 38.8 |
BHEL shows strong momentum with RSI at 62.7 and MACD at 5.13, supported by high trading volumes. The company posted a sharp profit jump (382 Cr. → 1,283 Cr.), which boosts sentiment. However, valuations are stretched with a P/E of 91.3 compared to the industry average of 38.8, and fundamentals like ROCE (8.35%) and ROE (6.11%) remain modest. The stock is near its 52-week high (425 ₹), suggesting limited upside in the short term. Swing traders can benefit from momentum but should be cautious of overvaluation.
Optimal Entry Price: 370–380 ₹ (near DMA 50 support)
Exit Strategy: If already holding, consider exiting near 420–425 ₹ resistance or if RSI crosses 70.
✅ Positive
- 📈 Strong quarterly PAT growth (382 Cr. → 1,283 Cr.).
- 📊 High trading volume (2.3 Cr.) compared to weekly average.
- 📉 Support near DMA 50 at 370 ₹ provides a favorable entry zone.
- 📈 Increase in FII holding (+0.95%) and DII holding (+4.23%).
⚠️ Limitation
- 📌 Very high P/E ratio of 91.3 vs industry average of 38.8.
- 📌 Modest ROCE (8.35%) and ROE (6.11%).
- 📌 Dividend yield of only 0.12%, offering limited income return.
📰 Company Negative News
- 📉 Valuation concerns due to high P/E and low profitability ratios.
- 📉 Debt-to-equity ratio at 0.31, higher than peers with zero debt.
🌟 Company Positive News
- 📈 Massive quarterly profit surge (154% variation).
- 📈 Strong institutional support from both FII and DII investors.
- 📈 Momentum indicators (RSI, MACD) remain bullish.
🏭 Industry
- ⚙️ Power and engineering sector benefits from infrastructure growth and government projects.
- 📌 Industry P/E at 38.8, showing BHEL trades at a significant premium.
📌 Conclusion
BHEL is a momentum-driven stock with strong quarterly performance and institutional support, making it a candidate for swing trading. Entry near 370–380 ₹ offers better risk-reward, while exit near 420–425 ₹ is optimal. Traders should remain cautious of stretched valuations and monitor RSI for overbought signals.