Karvy Stock Broking Limited has maintained ‘Buy’ rating on BHEL stock with an intraday target of Rs 1850.

According to Karvy, day traders can purchase the stock between Rs 1800-1810 with a stop loss of Rs 1780. If the stock market remains on positive track, the next target for the day will be above Rs 1880.

Shares of the company, on Friday (April 11), closed at Rs 1829.95, up Rs 64.70, on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 702,669. Current EPS and P/E ratio stood at 59.85 and 30.08 respectively. The share price has seen a 52-week high of Rs 2925 and a low of Rs 1197.5 on BSE.

The outlook for the stock is really very strong, and it is expected to move up on the back of huge volumes.

On April 9, Fitch Ratings assigned a National long-term issuer rating of AAA (ind) to BHEL with a Stable Outlook. At the same time, Fitch has assigned ratings of AAA (ind) to BHEL’s sanctioned fund-based cash credit limits aggregating Rs 1 billion and its non fund-based long-term bank facilities aggregating Rs 182,270 million. Fitch has also assigned a F1+ (ind) rating to BHEL’s non fund-based short term limits of Rs 17,730 million.

The ratings reflect BHEL’s strong business position as a market leader among the power generation equipment manufacturers in India, its technological capabilities in supplying power generation equipment across various fuels/capacities and a significantly large order book 4.5x of its FY07 revenues. BHEL’s superior financial position including large cash balances, a negligible debt, growing profitability and free cash flows also give support to the ratings.

Fitch anticipates that BHEL’s cash balances of INR58 billion would allow it to remain debt free on a net debt basis in the medium term in spite of increased working capital requirements.

Other stocks from the same sector that looks good for short-term trading includes BEML, BGR Energy and Suzlon Energy.