Buy Bharat Heavy Electricals, target price Rs 99: Axis Securities

Axis Securities has buy call on Bharat Heavy Electricals with a target price of Rs 99. The current market price of Bharat Heavy Electricals is Rs 81.15. Time period given by analyst is 3-4 weeks when Bharat Heavy Electricals price can reach defined target. Axis Securities recommended to keep stop loss at Rs 72.

Bharat Heavy Electricals, incorporated in the year 1964, is a Mid Cap company (having a market cap of Rs 28152.48 Crore) operating in Engineering sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 5418.74 Crore, up 14.26 % from last quarter Total Income of Rs 4742.28 Crore and up 4.26 % from last year same quarter Total Income of Rs 5197.25 Crore. Company has reported net profit after tax of Rs 1.96 Crore in latest quarter.

The company’s top management includes Dr.Nalin Shinghal, Dr.K Sivaprasad, Dr.Raj K Agarwal, Mr.Manish Kapoor, Mr.Raj Kamal Bindal, Mr.Shashank Priya, Mr.Vijay Mittal, Mr.Upinder Singh Matharu, Mr.Subodh Gupta, Ms.Renuka Gera, Mr.Jai Prakash Srivastava, Dr.Lekhasri Samantsinghar. Company has S R R K Sharma Associates as its auditors. As on 30-09-2022, the company has a total of 348 Crore shares outstanding.

Investment Rationale
Stock broke out with a strong bullish candle indicating a positive trend. Further, the breakout is accompanied with an increase in volume that confirms participation at breakout level. Also, the daily and weekly strength indicator RSI is in bullish mode and weekly RSI holding above its reference line which indicate positive momentum.

Promoter/FII Holdings
Promoters held 63.17 per cent stake in the company as of 30-Sep-2022, while FIIs owned 4.22 per cent, DIIs 14.18 per cent.