When it comes to the Indian stock market one could hardly find any name as old or classic as Bharat Heavy Electricals Limited (BHEL).
So if BHEL is the charismatic actor on the screen, then simply think of BHEL as the Bollywood actor, who has been ‘there and done that’ – it has many years of experience, it has faced successes and failures over the years but is still one of the most prominent actors on the big screen. Let us look at historical trends and get a feel of what makes this stock move as it does.
Bhel Share Price: Historical Trends
1. The Rise and Shine: Early Days of BHEL
BHEL was established in 1964 and is one of the largest Indian multinational engineering and manufacturing organisations which provides equipment to the power, transmission, transportation, and industrial markets.
Earlier days, it was truly a star due to the process of industrialization in India and it reflected very clearly in the *BHEL share price*. It was because of this monopoly-like position due to the increasing power generation and Industries that BHEL became the heavy electrical equipment manufacturer.
The 1980s and 1990s saw many Government orders to BHEL and had always been the institutional investor’s first choice. This particular stock was often referred to as ‘non risky’ investment for individuals who were looking to anyhow capitalise on their invested money, much like how everyone feels about Sachin Tendulkar’s batting average.
2. The Rollercoaster of Liberalisation and Market Reforms
Jump to the 1990s — the liberalisation of the Indian economy set and it was no more the stock market of a few select companies. The liberalisation brought in competition and suddenly BHEL was not the only company that had the monopoly in the Indian power industry.
The competition from the private players, particularly in power generation and infrastructure sectors led to cutting down of the margins and market share of BHEL.
The BHEL share price became volatile in the process as it adjusted to these new tides in the financial markets. Also, there were phases of growth that could be seen, for example, during acquisition of new contracts as well as increasing the array of the company’s services. However, there were also slumps when private competitors snatched away market share, or when global economic conditions impacted India’s infrastructure development.
3. The Golden Era and the Challenges Ahead
Experts and many people view this period as the golden period of the BHEL. The Indian government has been keen on infrastructure development most especially in the power sector; this led to increased orders to BHEL.
Between 2004 and 2010, the *BHEL share price also rose due to increase in its earnings and sometime doubling in some years. As was the case with most of its expansion programs, the market create demat account online welcomed the news that BHEL had started exporting its products and investors rushed to buy its stock.
In the case of BHEL, it came in the shape of the global economic crisis that hit the company during 2008-09 and then the problems emerging out of the power sector in India itself.
Slack economic growth rate, delayed implementation of projects, and change in energy mix that favoured renewable energy sources became the triggers that affected the order book, and hence the price of stock of BHEL.
The BHEL share price began to slip to new lows as the company faced a challenge of operating in a challenging environment that was characterised by new startups.
4. Recent Trends: Recovery and Resilience
BHEL is coming out of a period of many years in the red, and the past decade witnessed the company in the process of revival and modernisation.
This business has expanded in new areas such as solar energy, railways, and defence sectors considering the fact that the company has faced challenges in its power equipment business.
The above diversification however has not been well received by investors this has been in the following ways. Where some see BHEL expanding into new areas they feel it is good that the company is diversifying, there are others who are still waiting for these new areas to start showing their worth.
The share price of BHEL has fluctuated from time to time regarding these new business prospects, variation in government policies and the general macro environment.
This stock flutters in response to quarterly earnings reports, wins and losses concerning certain projects, and changes in policies that affect the firm’s energy and infrastructure businesses.
While the electricity equipment segment or the boiler business remains challenged, the endeavour to transform BHEL has been capable of attracting investor attention.
Conclusion
The existence of BHEL in the stock market can thus be narrated in a story of struggling, evolving and reinventing.
The graph below depicts the share price of BHEL and it can be seen that, BHEL has opened up from its government monopoly status to a competitive player in the market.
By analysing historical trends and understanding the factors influencing its price movements, investors can gain valuable insights into potential future performance.