BHEL shares jump 2% after signing 10-year MoU with Nuovo Pignone for fertiliser sector projects

Shares of Bharat Heavy Electricals Ltd (BHEL) jumped 2% to their high of Rs 286 on the BSE on Friday after the company signed a strategic Memorandum of Understanding (MoU) with Italy-based Nuovo Pignone International s.r.l. to jointly explore compressor revamp opportunities in India’s fertiliser sector.

The MoU, signed on April 9, 2025, will remain in effect for 10 years unless extended by mutual agreement. Under the partnership, BHEL will act as the lead bidder for targeted compressor train revamp projects, while Nuovo Pignone will serve as the nominated vendor with a defined scope of work.

The agreement does not involve equity transfer or the formation of a joint venture, and no upfront consideration has been exchanged. The collaboration is expected to help BHEL capture an estimated ~50% share of business value in the segment, boosting its presence in the repair and maintenance of fertiliser sector equipment.

Also Read: Tariff timeout sets stage for a freaky Friday rally. GIFT Nifty up over 3%

In February, BHEL announced a Rs 6,200 crore order from Damodar Valley Corporation (DVC) for the steam generator island package at the 2×660 MW Raghunathpur Thermal Power Station Phase-II project in Purulia, West Bengal.

The order includes supply, erection, testing, and commissioning of steam generators and auxiliaries, ESPs, FGD systems, ash handling systems, and associated electrical, control, instrumentation, and civil works.

Also Read: World’s 10 richest billionaires add $135 billion in wealth after Trump’s tariff pause; Musk, Zuckerberg see biggest surge

BHEL shares price target

As per Trendlyne data, the average target price of the stock is Rs 213, which indicates an upside of 1% from the current market prices. The consensus recommendation from 18 analysts for the stock is a ‘Hold’.

Technically, the stock’s relative strength index (RSI) stands at 54.6—well within the neutral zone (below 30 is oversold, above 70 is overbought). The MACD is at 3.7, above its center line but below the signal line.

BHEL shares are currently trading below their 5-day, 10-day, 100-day, 150-day, and 200-day simple moving averages (SMAs), but above the 20-day, 30-day, and 50-day SMAs.

BHEL shares price performance

In the previous session, BHEL shares closed 0.4% higher at Rs 211.8. The stock has declined 20% over the past six months but gained 200% over the last two years. The company’s market capitalisation stands at Rs 73,750 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)