1:5 Split, 2 Bonuses, 37 Dividends: Maharatna PSU Stock BHEL Hits New 52-Week High; BUY Or Book Profits?

Bharat Heavy Electricals (BHEL), a leading Maharatna PSU, touched a new 52-week high on November 10. Following this, the defence giant has given nearly 18% return year-to-date. There is potential for further upside in BHEL as brokerage ICICI Direct has set a target price of Rs 310 for the next 12 to 15 months. The recommendation comes after BHEL turned profitable in Q2 and reported an overall strong quarter.

Bharat Heavy Electricals Ltd Share Price:

BHEL stock price closed at Rs 273.20 apiece on BSE, up by 3.60% after closing bell on November 10. The current market cap is around Rs 95,129.97 crore. During the trading hours of Monday, however, the stock rallied to hit new 52-week high of Rs 274.45 apiece.

However, the stock's price-to-equity ratio is at 175.13x, while return on equity is at 2.20%.

BHEL Corporate Actions:

Dividends: BHEL has delivered 37 dividends since September 2003, as per Trendlyne data. In the last 12 months, BHEL's dividend amounted to Rs 0.50 per share. Its current dividend yield is at 0.19%.

Bonus: BHEL has rewarded investors with two bonuses. The first bonus was of 1:1 ratio and was awarded in June 2017, followed by second bonus of 1:2 ratio in September 2017.

Stock Split: BHEL shares have split only once and in the ratio of 1:5. From October 2011, BHEL's face value is down from Rs 10 each to Rs 2 each due to the stock split ratio.

BUY/SELL BHEL Stock Price?

In its latest note, ICICI Direct said, "Good accretion of orders and strong ordering pipeline will keep order inflows strong coupled with strong pick in execution from FY26E onwards. This will also help margins and return ratios to improve meaningfully over the next 2-3 years. Hence, we rate the stock buy with fair value of Rs 310 (30x FY27E EPS)."

However, as per Trendlyne, the consensus recommendation from 19 analysts for Bharat Heavy Electricals Ltd. is HOLD. Of the total, only 6 analysts have suggested STRONG BUY and 1 analyst recommended BUY. Also, the average target price is at Rs 234.53 apiece, which signals over 14.20% potential decline.

About Bharat Heavy Electricals Ltd:

BHEL is one of the largest engineering and manufacturing company of its kind in India engaged in the design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the core sectors of the economy.

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