BHEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | BHEL | Market Cap | 1,22,711 Cr. | Current Price | 352 ₹ | High / Low | 358 ₹ |
| Stock P/E | 154 | Book Value | 71.2 ₹ | Dividend Yield | 0.14 % | ROCE | 4.75 % |
| ROE | 2.00 % | Face Value | 2.00 ₹ | DMA 50 | 290 ₹ | DMA 200 | 265 ₹ |
| Chg in FII Hold | 0.95 % | Chg in DII Hold | 4.23 % | PAT Qtr | 382 Cr. | PAT Prev Qtr | 368 Cr. |
| RSI | 76.4 | MACD | 23.6 | Volume | 1,80,96,627 | Avg Vol 1Wk | 1,78,26,804 |
| Low price | 205 ₹ | High price | 358 ₹ | PEG Ratio | 21.3 | Debt to equity | 0.44 |
| 52w Index | 96.3 % | Qtr Profit Var | 207 % | EPS | 2.30 ₹ | Industry PE | 37.9 |
📈 Chart & Trend Analysis:
- Current price ₹352 is well above 50 DMA (₹290) and 200 DMA (₹265), confirming strong bullish momentum.
- RSI at 76.4 indicates overbought conditions, suggesting risk of near-term pullback.
- MACD at 23.6 remains strongly positive, supporting continuation of uptrend but signaling overheating.
- Bollinger Bands show price testing upper band, highlighting stretched valuations.
- Volume (1,80,96,627) is slightly above 1-week average (1,78,26,804), confirming strong participation.
🎯 Entry Zone: ₹280–300 (near 50 DMA support, safer accumulation)
🎯 Exit Zone: ₹350–358 (near resistance and 52-week high)
📊 Status: Trending upward but extremely overbought; vulnerable to reversal or consolidation.
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Positive
✔ Strong institutional support (FII +0.95%, DII +4.23%)
✔ Quarterly PAT growth (₹382 Cr vs ₹368 Cr)
✔ Trading well above 200 DMA, confirming bullish trend
✔ 52-week index at 96.3%, showing strong momentum
Limitation
⚠ Extremely high P/E (154 vs industry 37.9) indicates overvaluation
⚠ PEG ratio at 21.3 suggests poor growth-to-price balance
⚠ Weak ROCE (4.75%) and ROE (2.00%)
⚠ Dividend yield at only 0.14%
Company Negative News
📉 Overbought RSI (76.4) increases risk of correction
📉 Valuation stretched far beyond industry average
📉 Debt-to-equity at 0.44 adds financial pressure
Company Positive News
📈 Quarterly profit growth of 207% shows operational turnaround
📈 Strong institutional inflows from both FIIs and DIIs
📈 EPS at ₹2.30 remains stable
Industry
🏭 Industry PE at 37.9, far lower than BHEL’s, highlighting relative overvaluation
🏭 Power and infrastructure sector remains strategically important with government-led demand
Conclusion
BHEL is trending upward with strong momentum but is extremely overbought and overvalued. Entry near ₹280–300 offers safer risk-reward, while exits should be considered near ₹350–358 resistance. Despite strong institutional support and profit growth, weak fundamentals and stretched valuations limit medium-term investment appeal. Traders should exercise caution at current levels.
This report captures both the short-term technical momentum and the valuation-driven risks. Would you like me to also prepare a risk-managed intraday trade setup (buy/sell/stop-loss levels) for BHEL in the same HTML format, so you can integrate it directly into your trading workflow?