Shares of Bharat Heavy Electricals Ltd (BHEL) surged more than 3% on Friday, bouncing back after a steep drop the day before.
What sparked the rebound?
UBS started a ‘Buy’ recommendation for BHEL and set a price target of Rs 375 per share. That suggests the stock could climb over 35% from where it closed on Thursday.
Key order boosting confidence
UBS highlighted a big new contract worth about Rs 5,400 crore. BHEL will supply a coal‑gasification and raw syngas cleaning plant for a joint venture between Coal India and BHEL. The project uses BHEL’s own Pressurised Fluidised Bed Gasification (PFBG) technology and will run for 42 months to build, followed by a 60‑month operations and maintenance phase.
Broader market context
The rise also reflects buying in other capital‑goods stocks that fell sharply on Thursday, such as Siemens, ABB India and L&T. Despite the recent volatility, BHEL is up about 28% over the past year, far beating the Nifty 50’s roughly 10% gain.
What investors should watch
- UBS’s target price of Rs 375 suggests notable upside.
- The new coal‑to‑ammonium‑nitrate plant could improve BHEL’s order book and cash flow.
- Overall sentiment in capital‑goods stocks may stay positive if more firms report similar order wins.
Remember, this is my view, not a prediction. Do your own research or consult a certified advisor before making any investment decisions.