BHEL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.9
| Stock Code | BHEL | Market Cap | 87,712 Cr. | Current Price | 252 ₹ | High / Low | 306 ₹ |
| Stock P/E | 110 | Book Value | 71.2 ₹ | Dividend Yield | 0.20 % | ROCE | 4.75 % |
| ROE | 2.00 % | Face Value | 2.00 ₹ | DMA 50 | 262 ₹ | DMA 200 | 256 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 1.08 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 368 Cr. |
| RSI | 44.2 | MACD | -1.91 | Volume | 49,14,701 | Avg Vol 1Wk | 73,44,574 |
| Low price | 193 ₹ | High price | 306 ₹ | PEG Ratio | 15.2 | Debt to equity | 0.44 |
| 52w Index | 52.0 % | Qtr Profit Var | 207 % | EPS | 2.30 ₹ | Industry PE | 31.3 |
Analysis: Bharat Heavy Electricals Ltd (BHEL) shows weak fundamentals with low ROCE (4.75%) and ROE (2.00%), alongside a high debt-to-equity ratio of 0.44. The current price of ₹252 is below the 50 DMA (₹262) and 200 DMA (₹256), reflecting bearish sentiment. RSI at 44.2 indicates neutral momentum, while MACD is negative, suggesting continued weakness. The P/E of 110 is significantly higher than the industry average (31.3), pointing to overvaluation. Despite strong quarterly profit growth (+207%), overall profitability remains low, making swing trade potential limited and risky.
Optimal Entry Price: Around ₹240–₹245, closer to support levels, for a short-term rebound opportunity.
Exit Strategy (if already holding): Consider exiting near ₹270–₹280, where resistance aligns with the 50 DMA. A stop-loss near ₹235 is advisable to manage downside risk.
✅ Positive
- Quarterly PAT growth from ₹368 Cr. to ₹382 Cr. (+207% variation).
- DII holdings increased (+1.08%), showing domestic institutional support.
- Strong 52-week index performance (+52%).
⚠️ Limitation
- Extremely high P/E of 110 vs industry 31.3.
- Weak ROCE (4.75%) and ROE (2.00%).
- Price trading below both 50 & 200 DMA.
- Low dividend yield (0.20%).
📰 Company Negative News
- High debt-to-equity ratio (0.44) compared to peers.
- MACD remains negative, signaling weak momentum.
🌟 Company Positive News
- Strong quarterly profit growth (+207%).
- FII holdings increased slightly (+0.05%).
- DII holdings rose (+1.08%), showing confidence from domestic institutions.
🏭 Industry
- Power and infrastructure sector remains cyclical with government-driven demand.
- Industry P/E at 31.3 indicates moderate valuations compared to BHEL’s premium pricing.
📌 Conclusion
BHEL is fundamentally weak with poor efficiency metrics and high valuation. While recent profit growth and institutional support provide some positives, technical indicators remain bearish. Entry near ₹240–₹245 may be considered for a short-term swing, with exit around ₹270–₹280. Overall, swing trade potential is limited and caution is advised.