Revealed! Why BHEL share price skyrocketed today; Check what experts say
BHEL share price: The Bharat Heavy Electricals or BHEL share price surged in the intraday trade on Friday after a media report said that the government was looking to sell its stake in the company.
BHEL share price: The Bharat Heavy Electricals or BHEL share price surged in the intraday trade on Friday after a media report said that the government was looking to sell its stake in the company. Government may consider bringing down its stake in BHEL according to Zee Business Reasearch team.Government plans to bring its stake in BHEL to 26 per cent from 63.17 per cent now, which is cutting around 37% stakes in the company.
The recent report on BHEL from CLSA has majorly contributed to this massive correction in the share price. The report has upgraded the rating and call has been changed to 'Buy' from 'Sell' changing its target price to Rs 67 from Rs 54. It further adds that the government may soon sell around 37% stakes through a strategic sale process. The government may also sell its non-core assets and the new partner is expected to bring more benefits to the company.
The strategic sale is also expected to bring value unlocking and the stock is looking undervalued at the current market price, as per the report. The report further added that the valuation could be at the double prices as compared to current market. While, in case the disinvestment does not take place; the triggers are really positive for BHEL.
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Government has a divestment target of Rs 1.05 lakh crore for the current financial year. In both FY18 and FY19, the divestment proceeds exceeded the target of Rs 1 lakh crore and Rs 80,000 crore, respectively. The shares of the company closed 8.74 per cent higher at Rs 58.50 on NSE.
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