This PSU stock will touch the price of Rs 299, brokerage increased the target by 30%; Got 230% return in a year

PSU Stock Buy: Amid the ups and down of the share market, a handful of stocks have been consistently performing well. One of them is Bharat Heavy Electricals Limited (BHEL). In the trading session on BSE on Monday (March 11), the BHEL stock ended the trading session down by 1.20 per cent, or Rs 3.10, at 254.35.
The company is continuously receiving thermal orders. Considering the strong outlook of the PSU, brokerage house Antique Stock Broking has made BHEL its fundamental pick. BHEL has had a strong performance in the last one year, when it has risen by more than 230 per cent.

BHEL: Price will touch Rs 299, says brokerage

Brokerage house Antique has advised to buy BHEL. Also, the target price per share has been kept at Rs 299. On March 7, 2024, the share price closed at Rs 257. In this way, from the current price the stock can get a strong return of about 16 per cent. This stock has given more than 230 per cent returns to investors in a year. That is, if someone invested Rs 1 lakh in shares a year ago, its value is more than Rs 3.30 lakh. This PSU stock has given more than 80 per cent returns in 6 months. Flat trading is being seen in the stock on March 11, 2024.

BHEL: What is the brokerage's opinion?

Antique Stock Broking says, BHEL is continuously getting thermal orders. The company may be awarded a 11GW order by the end of FY 2025. The company received orders worth Rs 36,000 crore in 9MFY24. There has been an increase of 102 per cent on annual basis. The company has received orders for NLC Talabira Thermal Power Plant (3x800 MW), DCRTPP's Ultra Super Critical Expansion Unit (1x800 MW) and NTPC Singrauli Super Thermal Power Project Stage-4 (2x800 MW). It was expected to get 4 GW orders for thermal in the financial year 2024, whereas the company has so far secured 6.5 GW orders for thermal.

Brokerage says there may be a significant reversal in the order cycle in the next 3-4 years. Orders will get a boost from both power and non-power segments. The annual order inflow has been estimated at Rs 60,000 crore to Rs 70,000 crore. BHEL's earnings are expected to grow manifold during FY24–26 due to strong orders, improvement in execution and operating leverage.

(Disclaimer: The brokerage has given advice on investing in shares here. These are not the views of Zee Business. Consult your advisor before investing.)