- Recent correction in BHEL share price offers buying opportunity, says Morgan Stanley
- Brokerage maintains overweight rating with target price of Rs 304
- BHEL stock down 10% year-to-date amid volatility and high trading volumes
The recent correction in Bharat Heavy Electricals Ltd. share price presents an opportunity to accumulate for investors, according to Morgan Stanley. The brokerage has maintained an 'overweight' rating with a target price of Rs 304 and even though the stock is currently under pressure.
Analysts have issued a tactical 'buy' call, stating that the recent decline gives an opportunity for investors to accumulate the stock at a lower price. The BHEL stock is down 10% year-to-date.
The brokerage believes the share price will rise over the next 60 days and the correction should be used to accumulate the stock as BHEL's underlying fundamentals remain strong, supported by the virtue of being a key beneficiary of renewed traction in coal-based power orders. At the same time, the company is simultaneously diversifying its industrials business.
Morgan Stanley added that it expects the share price to rise over the next 60 days with expecting new orders with better terms to start contributing to profits from FY27 onward.
BHEL Share Price This Month
Over the recent trading sessions from Feb 2 to Feb 11, the stock showed noticeable volatility, with prices fluctuating between Rs 249.50 and Rs 277.00. Feb 11 saw the sharpest activity, with a significantly higher volume of over 85 million shares, compared to typical volumes of 3–8 million earlier in the period. While the stock dipped from its Feb 10 levels, it continued to show recovery momentum across most sessions.
BHEL Share Price Today.
Photo: NDTV Profit
Shares of BHEL touched a low of Rs 258.60 in Wednesday's trade. The scrip settled at Rs 260.65, down 5.58% over the previous close.
The government has decided to exercise the green shoe option in the Offer for Sale (OFS), and has put the entire 5% stake on the block, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.
The government is disinvesting 3% equity in BHEL with an additional 2% as a green-shoe option at a floor price of Rs 254 in the two-day offer for sale. Retail investors will be able to place a price bid on Thursday. The base issue size comprises over 10.44 crore shares, or 3% stake, in BHEL, plus an oversubscription option to sell over 6.96 crore shares or 2%, the company said in its regulatory filing.
The sale of total 17.41 crore shares, or 5% stake, would fetch the government Rs 4,422 crore. The government holds 63.17% in BHEL. So far this fiscal year, the government has raised Rs 8,768 crore through PSU disinvestments.
ALSO READ: Govt's BHEL Share Sale Subscribed Over 2 Times, Institutions Put in Rs 5,600-Crore Bids
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