BHEL shares rebound over 3 percent today in early trade after sharp sell-off; order win helps stock

Bharat Heavy Electricals Ltd (BHEL)

• BHEL shares rebound over 3 percent after Thursday's sharp 9 percent selloff
• UBS initiates 'Buy' call on BHEL, citing strong order momentum and execution
• BHEL stock up 28 percent in past year, outperforming Nifty 50's 10 percent gain

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Shares of Bharat Heavy Electricals Ltd (BHEL) recovered sharply in early trade on Friday, rising over 3 percent, as the stock rebounded a day after a sharp selloff triggered by policy-related concerns.

The stock was trading at Rs 280.75, up 3.31 percent in early deals. The recovery follows Thursday’s nearly 9 percent decline, when BHEL had hit the lower circuit intraday after reports suggested India may ease curbs on Chinese firms bidding for government contracts -- sparking a broad sell-off across capital-goods stocks.

Buying interest returned on Friday after UBS initiated a ‘Buy’ call on BHEL with a target price of Rs 375 per share, implying over 35 percent upside from Thursday’s closing levels. The brokerage cited strong order momentum and improving execution visibility as key reasons for its positive stance.

UBS highlighted BHEL’s Rs 5,400-crore coal gasification and raw syngas cleaning plant order from BCGCL, a joint venture between Coal India and BHEL. The project, for a coal-to-ammonium-nitrate plant, marks the first commercial deployment of BHEL’s proprietary Pressurised Fluidised Bed Gasification (PFBG) technology, with a 42-month execution period and 60-month operations and maintenance tenure.

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Friday’s rebound also reflects selective buying in beaten-down capital-goods stocks after Thursday’s sharp correction, which had weighed on peers such as Siemens, ABB India and L&T.

Despite the recent volatility, BHEL shares remain up about 28 percent over the past one year, significantly outperforming the Nifty 50’s roughly 10 percent gain. The company had a market capitalisation of about Rs 94,700 crore at the previous close.

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