1:5 Split, 2 Bonus, 37 Dividends In 22 Yrs; Maharatna PSU BHEL Is Rs 3 Away From New Peak; Upgraded To BUY

Maharatna PSU company Bharat Heavy Electricals Limited (BHEL) who is engaged in diverse businesses from engineering and heavy equipment to defence, has witnessed stellar buying in recent days. On November 26, BHEL crossed Rs 290 level before correcting slightly. The stock is now nearing its 52-week high, and if the bullish trend continues in the broader market, BHEL could hit new peaks before this week's end. Amidst a strong order pipeline, BHEL stock price received an upgrade to BUY from the HOLD recommendation.

BHEL Share Price:

After closing bell on November 26, BHEL stock price stood at Rs 289.70 apiece, up by 2.42% on BSE with market cap of Rs 1,00,875.38 crore. From the current price level, BHEL is just Rs 2.6 away from hitting its new 52-week high of Rs 292.30 apiece.

YTD, BHEL stock price surged by 11.3% so far. The company's price-to-equity ratio is at 185.71x, and return on equity is at 2.20%, as per BSE data.

BHEL Dividends + Bonus + Split

Dividends: BHEL has delivered 37 dividends since September 2003, as per Trendlyne data. In the last 12 months, BHEL's dividend amounted to Rs 0.50 per share. Its current dividend yield is at 0.12%.

Bonus: BHEL has rewarded investors with two bonuses. The first bonus was of 1:1 ratio and was awarded in June 2017, followed by second bonus of 1:2 ratio in September 2017.

Stock Split: BHEL shares have split only once and in the ratio of 1:5. From October 2011, BHEL's face value is down from Rs 10 each to Rs 2 each due to the stock split ratio.

BUY/SELL BHEL Stock Price?

Analysts at Geojit are the latest to recommend on BHEL stock. Their note said, "BHEL delivered a steady performance, driven by strong project execution across thermal, hydro and industrial systems, supported by diversification into renewables, rail transportation and defence manufacturing."

Further, they cited that BHEL's management remained focused on improving operational efficiency, expanding the clean energy and nuclear portfolio and leveraging digital solutions for smarter project management.

Accordingly, the analysts added, "Strategic initiatives in EV infrastructure, advance train protection systems and aerospace components are poised to drive long-term growth visibility. Although, continued execution discipline and working capital optimisation are key near-term priorities, we are positive and upgrade our rating on the stock to BUY from HOLD, with a revised target price of Rs. 329, based on 2.4x FY27E P/S."

About Bharat Heavy Electricals Limited:

Bharat Heavy Electricals Ltd (BHEL), a public sector entity, is India's largest engineering company. It supplies power plant equipment such as gas turbines, generators, thermal sets, diesel shunters, turbo sets, hydro sets, power transformers, switchgears, circuit breakers and boilers. It also manufactures compressors, valves, rectifiers, pumps, capacitors and oil rigs, and undertakes castings and forgings.

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