BHEL trades higher, wins two arbitration awards

BHEL share price was up over a percent in the early trade on October 6 after the firm announced that it received two awards in arbitration proceedings against Jaiprakash Power Ventures Limited.

In two different arbitration proceedings initiated by Bharat Heavy Electricals against Jaiprakash Power Ventures, “substantial” claims of BHEL have been awarded by the arbitral tribunal, the company has said.

The two proceedings related to an ESP contract for ‘2 x 660 MW Jaypee Nigrie Super Thermal Power Project’ and a BTG contract for ‘2 x 250 MW Bina Thermal Power Plant.

At 10.22 am, BHEL was trading at Rs 129.40.63 on the NSE, up 1.6 percent from the previous close.

Follow our market blog for all the live action

Shareholding, stock movement and technical view

Compared to the Nifty’s one-year run at 13.6 percent, BHEL has gained 106.6 percent, doubling investors wealth.

Most of the gains have come in over the past six months, with the stock soaring 81.59 percent during the period.

The counter’s RSI stands at 54.4, indicating that the stock is neither oversold nor overbought. There is high volatility in the stock, as suggested by the one-year beta of 1.29. The stock is also trading above all its key moving averages.

According to the June shareholding data, the promoters have held a 63.2 percent stake in the firm over quarters. FIIs held 7.8 percent, decreasing their holdings from 8.58 percent on a sequential basis.  DIIs owned 16.4 percent, of which 4.6 percent was held by mutual funds. The public held a 12.7 percent stake in BHEL.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.