BHEL surges 9% as Q4 profit rises more than double

Shares of Bharat Heavy Electricals Limited (BHEL) have moved higher by 9% to Rs 86.45 per share on the market in noon deal after the state-owned company reported a more than double standalone net profit of Rs 4.57 billion in March quarter (Q4FY18). It had a profit of Rs 2.16 billion in the same quarter last fiscal.
Operational income during the quarter under review however remained flat at Rs 98.29 billion against Rs 98.74 billion in the corresponding quarter of previous year. Total expenditure of the company declined 9.9% to Rs 92.01 billion from Rs 102.08 billion during the quarter.

However, the company's net profit and operational income were below an average analyst estimate of Rs 4.76 billion and Rs 110.11 billion, respectively.

The board has recommended final dividend @ 51% (Rs 1.02 per share) on the paid up share capital of the company for FY 2017-18.

At 12:45 pm; the stock was trading 8% higher at Rs 85.30 on the BSE, as compared to 0.21% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than four-fold with a combined 31.25 million shares changed hands on the BSE and NSE so far.

Key trading ideas: Buy PNB, Berger Paints, BHEL

STOCK MARKET - Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW:
Market has been consolidating at the levels of 10,260 and 10,370 for quite some time, however, the support for the day is seen at 10,300 while resistance is seen at 10,390. Nifty has its weekly trend down. It would turn up if it closes above 10,368 at the end of the week.

BUY PNB
CMP: Rs 189.20    
TARGET: Rs 215    
STOP LOSS: Rs 178
The stock has been more or less consolidating after the huge spurt it has produced some weeks back and now looks attractive and poised for a further rally upside with strength and potential and we anticipate it to scale the level of around Rs 216-218 levels in the coming days. The RSI is positive with a trend reversal indicated and with the bias being maintained positive, we recommend a buy in this stock for an upside target of Rs 215 keeping a stop loss of Rs 178.

BUY BERGER PAINTS
CMP: Rs 249.80    
TARGET: Rs 275    
STOP LOSS: Rs 238
The stock has made a higher bottom like pattern in the daily chart and it has been consistently taking support at the 200-DMA which is at 248 levels currently and making a bounce from there on. The stock has been moving in a similar pattern in the past 5-6 months and from here on we anticipate the stock to move again further to scale 275 levels. We recommend a buy in this stock for an upside target of Rs 275 keeping a stop loss of Rs 238.

BUY BHEL  
CMP: Rs 88.65    
TARGET: Rs 97  
STOP LOSS: Rs 85
The stock has corrected well from the peak of 100 to bottom out at around 86 levels to look attractive and potential for further rise in the coming days. The RSI has been roaming in the oversold zone and now has indicated a trend reversal with a buy signal and has signified a positive bias. With decent volume participation witnessed, we recommend a  buy in this  stock for an upside target of 97 keeping a stop loss of 85.

BHEL, Bharat Forge and two others announce bonus shares today

STOCK MARKET - Four companies – Bharat Forge, Bharat Heavy Electricals Limited (BHEL), Bharat Electronics and Manpasand Beverages – have announced bonus shares on Thursday.

The board of directors of Bharat Forge and Manpasand Beverages have recommended issuing bonus shares to holders of equity shares of the companies in the ratio of 1:1 i.e. one bonus equity share for every one fully paid-up equity shares held.

BHEL, the state-owned company, recommended issue of bonus shares to the members of the company by capitalisation of its free reserves in the ratio of 1 bonus equity share for every 2 existing equity shares.

BEL approved the proposal for issue of bonus shares in the ratio of 1:10 i.e. one bonus share for every 10 shares held.

Except, Manpasand Beverages (up 2% at Rs 784), the remaining three stocks BHEL (down 4% at Rs 128), BEL (down 4% at Rs 173) and Bharat Forge (down 1% at Rs 1,154) failed to cheer after bonus announcements, falling by up to 4% on BSE. On comparison, the S&P BSE was down 0.73% at 31,567 points at 02:45 pm.

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