Bharat Electronics shares climb 8% today; will this upmove sustain?

Bharat Electronics Ltd (BEL) shares rose as much as 8.12 per cent in Thursday's trade to hit a high of Rs 281.50. The stock was last seen trading 5.07 per cent higher at Rs 273.55. At this price, it has slipped 15.31 per cent from its record high of Rs 323, a level seen earlier this week on June 3.

Technical analysts largely suggested that the counter could see more "consolidation with a flat to negative tone." One of the analysts said traders should consider booking 'some' profit.

"The stock price is currently not cheap as it has run up a lot. I would recommend some profit booking on the counter," Sanjiv Bhasin, Director at IIFL Securities, told Business Today TV.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, The stock has seen a correction. For now, the counter is likely to witness consolidation with a flat to negative tone. The Rs 230-225 zone is likely to be seen as intermediate support, followed by Rs 210-200 levels. On the higher end, a series of resistance could be seen around Rs 270-300 in the comparable period."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Resistance on the counter will be seen at Rs 280. A decisive breach above the said range can only decide the next leg of rally. Support will be at Rs 245."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The expected trading range will be between Rs 245 and Rs 285 for a month."

On BSE, around 63.98 lakh share changed hands today at the time of writing this story. The figure was lower than the two-week average volume of 66.85 lakh shares. Turnover on the counter came at Rs 176.20 crore, commanding a market capitalisation (m-cap) of Rs 1,98,899.08 crore.

The company's stock has a price-to-equity (P/E) ratio of 49.52 against a price-to-book (P/B) value of 12.38. Earnings per share (EPS) stood at 5.50 with a return on equity of 25.