Shares of Bharat Heavy Electricals Ltd. (BHEL) gained over 8 percent during intraday trading on Friday to hit a new 52-week high of Rs 81.5.
The central public sector undertaking stock has gained 32 percent so far this year while it has gained 13.43 percent in the last month. The shares are extending their gains they had in 2021, when they had jumped nearly 70 percent.
BHEL shares have been on an uptrend since mid-October after the company signed an agreement with Coal India and NLC India for setting up coal gasification-based plants. The agreement is being looked at as a big step towards achieving the national target of gasification of 100 million tonnes of coal.
Earlier, brokerage firm DAM Capital upgraded its rating on BHEL to ‘buy' after 54 quarters on the back of a strong turnaround in earnings and profitability. Brokerage firm Nomura also raised its price target on BHEL to Rs 65 in September.
However, Goldman Sachs believes that BHEL's path to profitability is still uncertain and that it expects the company to do so in financial year 2024. It maintained its sell rating on the stock with a price target of Rs 30.
The state-owned firm said on November 22 that it paid a final dividend of Rs 88 crore to the Indian Government for the previous financial year. A total dividend of over Rs 139 crore has been paid by BHEL to its shareholders in the previous financial year.
For the September quarter, BHEL posted a net profit of Rs 12 crore due to a tax reversal worth Rs 212 crore. The company's revenue remained flat at Rs 5,203 crore.
The BHEL stock ended trading at Rs 82.25, up nearly 10 percent on Friday.
(Edited by : Rukmani Krishna)
First Published: Nov 25, 2022 3:40 PM IST
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