BHEL Share Price: State-owned engineering firm Bharat Heavy Electricals Ltd (BHEL) on Thursday said that it has started the supply of semi-high-speed underslung
traction transformers for the Vande Bharat sleeper train project from its Jhansi plant. BHEL, in a statement, said the supply of underslung traction transformers for the prestigious Vande Bharat Sleeper Train project is a significant milestone in its 'Make in India' initiatives. Vande Bharat Sleeper Train project is being executed by a BHEL-led consortium with TRSL. BHEL is a Maharatna PSU under the administrative control of the Ministry of Heavy Industries. BHEL shares on Wednesday (Jan 14) closed 0.58 per cent higher at Rs 357.05 on BSE. BHEL shares have outperformed the markets in the last one year by producing a return of 32 per cent versus 9 per cent rise in the BSE Sensex. In two and three years, BHEL shares have sprinted 55 per cent and 104 per cent, respectively. Sneha Poddar, VP-Research, Wealth Management at Motilal Oswal Financial Services, said that BHEL stock may see some momentum ahead of the Union Budget, but the overall situation in the sector looks subdued for now. At present, most power and power-related engineering related stocks are under pressure because the sector is facing issues and one of the key problems is the mismatch between demand and supply. "While power generation capacity has increased, grid-level congestion is creating a bottleneck. The sector is unable to fully capitalise on available capacity, and as a result, many power companies are struggling. There is hope that the government may address these concerns in the upcoming Budget. If the government announces large capital expenditure focused on improving transmission infrastructure and easing grid congestion, it could provide much-needed relief to the sector," she said. "Such measures may also act as a trigger for stocks like BHEL, which are closely linked to power and infrastructure spending. However, a lot depends on what the Budget delivers. If there are no meaningful or positive announcements for the power sector, the pressure on these stocks is likely to continue. Therefore, investors should remain cautious for now," the analyst said. She said that the best approach would be to closely watch BHEL over the coming weeks and based on the Budget announcements, "investors should whether to stay invested or exit". "A clear momentum will emerge in BHEL after the Budget," she added. BHEL is a major engineering and manufacturing enterprise. It has a market valuation of Rs 1.54 lakh crore. VIDEO
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