BHEL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.6

📈 Technical Analysis

• Chart Patterns: Stock is trading close to its 52-week high (295 ₹), facing resistance at this level.
• Moving Averages: Current price (276 ₹) is above both 50 DMA (269 ₹) and 200 DMA (248 ₹), indicating bullish bias.
• RSI: At 48.6, RSI is neutral, suggesting consolidation rather than strong momentum.
• MACD: Positive at 2.13, showing mild bullish crossover but momentum is weak.
• Bollinger Bands: Price is near the upper band, signaling possible resistance and sideways consolidation.
• Volume Trends: Current volume (44,79,083) is slightly below 1-week average (45,52,886), showing reduced participation near resistance.

🎯 Momentum & Trade Zones

• Support Levels: 269 ₹ (50 DMA), 248 ₹ (200 DMA), and strong base at 230 ₹.
• Resistance Levels: 295 ₹ (52-week high). Breakout above this may lead to 310–320 ₹ zone.
• Entry Zone: 265–270 ₹ (near support, favorable risk-reward).
• Exit Zone: 290–295 ₹ (near resistance/top band).
• Trend Status: Consolidating near highs with mild bullish bias.

✅ Positive

• Price trading above both 50 DMA and 200 DMA.
• Quarterly PAT turned positive (368 Cr.) after previous loss (-455 Cr.).
• Strong quarterly profit growth (+280% QoQ).
• Institutional support from DIIs (+0.17%).

⚠️ Limitation

• Extremely high P/E ratio (178) compared to industry average (43.9).
• Low ROCE (4.75%) and ROE (2.00%) indicate weak capital efficiency.
• PEG ratio of 24.6 suggests expensive valuation relative to growth.

📉 Company Negative News

• FII holdings decreased (-0.13%), showing reduced foreign investor confidence.
• EPS remains low at 1.56 ₹ despite profitability improvement.

📊 Company Positive News

• Turnaround in quarterly profits from loss to gain.
• Stock trading at 84% of its 52-week range, showing strong recovery.
• Improved investor sentiment with DIIs increasing stake.

🏭 Industry

• Industry P/E at 43.9, much lower than BHEL’s valuation, suggesting overvaluation.
• Power and infrastructure sector demand is rising, supporting long-term growth prospects.

📝 Conclusion

• BHEL is consolidating near its 52-week high with mild bullish signals.
• Valuations are stretched, and efficiency metrics remain weak despite profit recovery.
• Optimal strategy: Buy near support (265–270 ₹) and book profits near resistance (290–295 ₹).
• Short-term outlook: Consolidation; long-term outlook depends on sustained earnings improvement.