BHEL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | BHEL | Market Cap | 1,31,295 Cr. | Current Price | 377 ₹ | High / Low | 399 ₹ |
| Stock P/E | 83.2 | Book Value | 76.2 ₹ | Dividend Yield | 0.13 % | ROCE | 8.35 % |
| ROE | 6.11 % | Face Value | 2.00 ₹ | DMA 50 | 293 ₹ | DMA 200 | 266 ₹ |
| Chg in FII Hold | 0.95 % | Chg in DII Hold | 4.23 % | PAT Qtr | 1,283 Cr. | PAT Prev Qtr | 382 Cr. |
| RSI | 81.6 | MACD | 25.6 | Volume | 11,01,51,283 | Avg Vol 1Wk | 4,00,28,778 |
| Low price | 205 ₹ | High price | 399 ₹ | PEG Ratio | 2.19 | Debt to equity | 0.31 |
| 52w Index | 88.7 % | Qtr Profit Var | 154 % | EPS | 4.53 ₹ | Industry PE | 37.8 |
Analysis: Bharat Heavy Electricals Ltd (BHEL) has shown strong recent profit growth, with PAT rising from ₹382 Cr. to ₹1,283 Cr. (154% increase). The current price of ₹377 is near its 52-week high of ₹399, suggesting limited immediate upside. RSI at 81.6 indicates overbought conditions, while MACD remains positive, reflecting bullish momentum. Fundamentally, ROCE (8.35%) and ROE (6.11%) are weak compared to peers, and the P/E of 83.2 is significantly higher than the industry average of 37.8, making valuations stretched. Despite strong institutional support (FII +0.95%, DII +4.23%), traders should be cautious due to overheated technicals.
Optimal Entry Price: ₹350–₹360 (on pullback from overbought levels).
Exit Strategy (if already holding): Consider booking profits near ₹395–₹399 resistance, with a stop-loss below ₹345.
✅ Positive
- Strong quarterly PAT growth (154%).
- FII holdings increased (+0.95%) and DII holdings increased (+4.23%).
- Stock trading well above 50 DMA (₹293) and 200 DMA (₹266), showing long-term strength.
- High trading volume compared to weekly average, indicating strong market participation.
⚠️ Limitation
- High P/E (83.2) compared to industry average (37.8).
- Weak ROCE (8.35%) and ROE (6.11%) show poor efficiency.
- RSI at 81.6 indicates overbought conditions.
- Debt-to-equity ratio of 0.31 adds moderate leverage risk.
📉 Company Negative News
- Valuation stretched with P/E more than double industry average.
- Low return ratios compared to peers.
- Overbought technicals may trigger short-term correction.
📈 Company Positive News
- Massive quarterly profit growth from ₹382 Cr. to ₹1,283 Cr.
- Strong institutional support with both FII and DII increasing holdings.
- Stock trading near 52-week high, reflecting strong investor sentiment.
🏭 Industry
- Power and infrastructure sector remains critical with government-driven demand.
- Industry P/E at 37.8 indicates moderate valuations compared to BHEL’s premium.
🔎 Conclusion
BHEL is a short-term swing trade candidate with strong momentum and institutional support. However, overbought RSI and stretched valuations suggest caution. Entry is better on pullbacks near ₹350–₹360, with profit booking around ₹395–₹399. Risk management is essential due to weak fundamentals and high valuation multiples.