BHEL Share Price Zooms After Coverage Initiation With 'Buy' Rating From UBS

Bharat Heavy Electricals Ltd.'s share price spiked nearly 3% after the company received coverage initiation from UBS.

The brokerage noted that there is thermal reviving and remunerative growth ahead for the company. It also noted that the company's net profit is expected to rise eight times by FY28E.

The brokerage initiated coverage on multiple industrial and infrastructure power Original Equipment Manufacturers with a 'buy' rating on Monday, including Waaree Energy, Suzlon, Premier Energy and BHEL.

UBS sees rising thermal orders for BHEL, as it believes thermal power remains relevant amid the renewable energy transition. The brokerage has given a target price of Rs 340.

The scrip rose as much as 2.87% to Rs 248.37 apiece. It pared gains to trade 1.51% higher at Rs 245.07 apiece, as of 10:37 a.m. This compares to a 0.44% decline in the NSE Nifty 50 Index.

It has fallen 15.96% in the last 12 months. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 46.

Out of 19 analysts tracking the company, eight maintain a 'buy' rating, three recommend a 'hold,' and eight suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 7.2%.