Government companies, especially well-established PSUs, can offer investors a good option. If you are yet to wet your feet in the stock market, buying PSU shares can be a good start.
With rising BEL and BHEL share price, both companies offer a sound investment opportunity. Let’s look into the details of investing:
Why invest in the stock market?
By investing in stocks and shares, you stand to make large capital gains over a period of times. This is, however, dependent on the fact that you make smart choices when it comes to selecting companies.
With stock market investments, you have the below advantages:
- High liquidity as compared to real estate.
- Versatile options that include:
- Shares
- Bonds
- Mutual funds
- Derivatives
- Regular income from dividends paid to shareholders
- High returns
- Convenient
- You can get voting rights with enough shares
- Regulated by SEBI
How to evaluate a stock?
To understand a company’s position in the stock market, a combination of fundamental and technical analysis is used:
- Performance in the stock market
- Operational stability
- Whether it has any current debt or has been in debt recently.
- Market history and associated data
- Current market behavior
A detailed predictive analysis by experts will reveal the condition of a company in the stock market.
Further, this also depends on:
- Economic indicators
- Sector trends
- Current regulatory environment
For a more detailed evaluation, consider the following:
- Fundamentals of the company
- It’s potential for growth
- Management
- Corporate governance
- Comparison of a company’s P/E ratio to other similar stocks
- Check the dividend yield
- The amount of debt
- Read the annual reports
- Account for inflation
Additionally, make sure to look at the earnings per share, return on equity, dividend, and price to book ratio.
About BHEL
Being a government owned engineering and manufacturing company, BHEL (Bharat Heavy Electricals Limited) can be a sound investment. They manufacture equipment for:
- Power generation
- Infrastructure
- Transportation
- Oil and gas
- Defense
- Aerospace
It has over 150 project sites and has a foothold in a total of 89 countries.
Why invest in BHEL?
BHEL dominates the Indian market when it comes to manufacturing heavy equipment for industries. An overview of their business will reveal:
- A strong manufacturing base
- One of the biggest companies in the engineering sector
- They have excellent prospects for growth
While they may be facing competition from the private sector, their market hold is unparalleled. This results in high profits and excellent turnovers, making BHEL a very attractive investment.
BHEL Share Price
Those who regularly look into stock prices will be well aware that BHEL share price is on the rise. BHEL is currently trading at Rs 280 – 290 (approx.), and steadily gaining.
Keeping up with current trends in BHEL share price, analysts are split on what to do. As a result, you may hold, sell, or buy. In whichever case that you select, BHEL share price is at the ideal level.
If you are looking for a long-term investment, BHEL has shown record growth over the past few years.
About BEL
Operating under the Ministry of Defense, Bharat Electronics Limited (BEL) can provide a stable investment opportunity for those looking for a good stock option. They do the following:
- Creates products for the Army, Airforce, and Navy
- Collaborative research and development work
- Cyber security
- Non-defense products:
- EVMs
- Energy storage products
- Renewable energy
- Provide tech consultancy
For state-of-the-art machinery, the Government looks to BEL.
Why invest in BEL?
BEL is the leading company when it comes to the defense sector.
- Strong profits and revenue generated
- Operational improvements
- High order inflows
- Takes part in R&D
- High market visibility
While they may take time for bigger projects, they have a strong market base, creating devices and machinery for the Indian government.
BEL Share Price
BHEL stocks are on the rise, painting an exciting scenario for investors. Exempting a few minor dips, that are not unusual in the stock market, the revenue, profits, and net worth of BEL are on a consistent rise.
Currently, BEL share price stands valued at Rs. 290 per share (approx.). Analysts estimate that if you currently own BEL stocks, you can gain a lot by selling. While is this a more popular suggestion by experts, you may be looking for a long-term investment.
Considering their business, BEL share price should increase, making them a good call for a longer investment.
Why go for PSU stocks?
While it is always safer to invest your money with companies that are well established in the stock market, PSU stocks have an edge over them:
- Stable business
- High dividend income
- Backed by the government
You can reduce your risk by diversifying your portfolio and buying stocks from different PSUs. With the competitive BHEL and BEL share price, this might be a good time to invest in some PSU shares.
Which one should you select?
If you are using an asset management company, whether app or website, they will offer you:
- Interactive data and charts
- Evaluation tools
- Expert advice
They will also guide you about what to do with your existing shares: sell, hold, or buy.
While you can do this via a broker, it is always better to use unbiased expert advice. Evaluate BEL and BHEL share price, their company structure, profits, and revenue before investing.
To conclude
Asset management companies run regular analytics on the more sought after companies in the market. In addition to evaluating share price, these analytics provide a detailed yet easy overview.
If you are yet to start trading in the stock market, PSU stocks with good prices like BHEL and BEL share price, can be a good option for you.
