BHEL Share Price declined 6 percent and ended the session at Rs 203. The stock could see reversal and reach higher levels in the coming sessions. The stock has declined nearly 20 percent in the last one month. The stock has major support at Rs 192.

Candlestick Patterns Analysis

On the daily chart, BHEL has formed a Bullish Engulfing Pattern near the Rs 203 level, which is indicative of a potential reversal to the upside. This pattern, coupled with strong volumes, suggests renewed buyer interest. However, confirmation of the bullish trend would require a breakout above the Rs 216 resistance level.

Fibonacci Retracement Levels

Using the 52-week high of Rs 335.35 and the 52-week low of Rs 192.00, the Fibonacci retracement levels for BHEL are calculated as follows:

Key Observations:

BHEL is trading near the 23.6% retracement level of Rs 226.87, making it a critical resistance to watch.
A sustained breakout above Rs 226.87 could push the stock toward the 38.2% level of Rs 252.23.
Immediate support lies near Rs 203, aligning closely with the low of the current trading range.

Support and Resistance Levels

Immediate Support: Rs 203 (recent low).
Critical Support: Rs 192 (52-week low).
Immediate Resistance: Rs 216 (current high).
Key Resistance: Rs 226.87 (23.6% Fibonacci level).

If the stock breaches Rs 216, it could gain momentum toward Rs 226.87, with further potential to reach Rs 252.23 if broader market conditions remain favorable.

Actionable Insights

Short-Term Strategy

Traders can look for a breakout above Rs 216, with a target of Rs 226.87. Stop-loss should be placed near Rs 203 to manage risk.
Medium-Term Opportunity

Investors can accumulate the stock in the Rs 203–216 range for potential upside toward Rs 252.23.
Long-Term Potential

Given the stock’s P/E ratio of 303.51, long-term investors should focus on fundamental triggers such as new project orders or improvements in financial metrics. Entry near Rs 192 would offer an attractive risk-reward ratio.

India’s surging energy demand has put immense pressure on its baseload thermal power capacity. Top government officials have urged BHEL Ltd, a key manufacturer and installer of critical thermal power equipment, to enhance project execution by engaging third-party consultants and hiring financially sound contractors. This directive comes in response to concerns raised by NTPC Ltd, India’s largest thermal power producer, about delays and quality issues in project execution. Despite BHEL’s commitment to commissioning 9 GW of thermal capacity in FY25, only 60 MW was added between April and November, highlighting systemic challenges.

Call for Improved Project Execution

BHEL’s Role in Thermal Power
As a leading manufacturer of boilers and turbines, BHEL is central to India’s thermal power capacity. However, delays and quality concerns have prompted government officials to recommend third-party consultancy and better contractor selection to enhance efficiency.

NTPC’s Concerns Over Delays
NTPC, which heavily relies on BHEL for equipment and project execution, raised alarms over slow progress and cited the need for “better project management.” In a September meeting, NTPC highlighted delays and quality issues like boiler tube leakages and equipment deterioration.

Ambitious Targets and Underwhelming Results

Commitment to 9 GW Capacity
BHEL committed to commissioning 9 GW of thermal capacity during FY25, as emphasized by top officials from the Union ministries of power and heavy industries. The initiative was deemed critical to India’s energy security.

Progress Falls Short
Despite the ambitious target, only 60 MW of capacity was added between April and November against the goal of 7.4 GW, reflecting significant underperformance due to systemic issues.

Reasons Behind the Delays

Operational Challenges
Officials cited theft, fire incidents, slow civil works, and raw material shortages as primary reasons for project delays.

Structural Issues
BHEL CMD Koppu Sadashiv Murthy highlighted broader systemic challenges, including:

Limited vendor base.
Skilled labor shortages.
Statutory and law-and-order issues.
Prolonged Project Timelines
Supercritical thermal projects, which account for most new capacity, take an average of six years to commission, further compounding the delays.

Government’s Emphasis on National Importance

Critical Role of Thermal Power
With both BHEL and NTPC being Central government-owned entities, their collaboration is pivotal to addressing India’s energy demand. Top bureaucrats stressed the “national importance” of achieving thermal power capacity goals during the September meeting.

Pressure to Deliver
Officials emphasized that meeting targets is not just a corporate responsibility but also crucial for national energy security, urging all stakeholders to align efforts to ensure timely execution.

Way Forward: Recommendations and Strategies

Third-Party Consultancy
To streamline operations, officials recommended engaging third-party consultancy firms for expertise in project management and technical execution.

Financially Sound Contractors
Hiring well-capitalized contractors was suggested to ensure smoother project execution and mitigate risks related to financial constraints.

Strengthening Vendor and Material Supply Chains
Expanding the vendor base and securing reliable sources of raw materials were identified as critical steps to avoid future delays.