Bharat Heavy Electricals (BHEL) experienced a significant uptick in its share price, soaring nearly 6% to achieve a new 52-week high of ₹205 on the NSE on Monday. This surge coincided with a media report revealing that the state-owned engineering company secured the top bid for a substantial ₹19,422-crore turnkey contract.
The contract involves constructing a thermal power plant for NLC India in Talabira, Odisha. Following the unveiling of financial bids on Friday, BHEL emerged as the leading bidder, outperforming L&T-MHI, according to a report by Hindu Business Line.
BHEL is slated to construct three ultra supercritical units, each with an 800 MW capacity, for NLC India at Talabira. The report indicates that NLC has included a fourth 800 MW unit in the project, although it remains unclear if a separate tender will be issued for this additional unit.
The surge in the stock price was accompanied by robust trading volumes, with over 6 crore shares exchanged on the NSE by around 1:30 pm, amounting to a traded value of ₹1,220.57 crore.
The recent price movement has propelled the stock into an overbought zone, as indicated by momentum indicators RSI and MFI, standing at 70.6 and 76.4, respectively, according to Trendlyne. Values above 70 are typically considered overbought, while those below 30 suggest oversold conditions.
Notably, the stock has delivered impressive returns of over 150% in the past year, outperforming the Nifty, which recorded a comparatively modest 19% gain during the same period. BHEL is currently trading above both its 50-day and 200-day simple moving averages (SMAs).
Additionally, this high-performing stock is actively traded in the Futures and Options (F&O) segment. Despite its active trading, BHEL exhibits relatively low volatility, boasting a 1-year beta of 0.2, as reported by Trendlyne. On Friday, the Market Wide Position Limit (MWPL) for BHEL reached 81.7%, and Trendlyne reported an Open Interest (OI) of 103.9 million, indicating a 4% increase from the preceding session.
