Shares of state-owned Bharat Heavy Electric Ltd (BHEL) tumbled 7% in intraday trade on Friday as investors took profits after a steady rise over the past month. Shares in BHEL have risen 26.4% since April 4, compared with a gain of 3.4% for the benchmark S&P BSE Sensex. A total of 39.46 million shares changed hands on the NSE and BSE as of 11:34 am.

BHEL has received many orders over the past few months, making analysts bullish on the stock.

For instance, last month, a consortium of BHEL and Titagarh Wagons received an order for 80 Vande Bharat trains, one of the largest contracts awarded in this tender worth over Rs 23,000 crore. The order value includes Rs 9,600 crore for trainset supply, with the balance for 35 years of maintenance.

The consortium will manufacture, test, commission and supply 80 energy-efficient trains with 176 kilometres per hour (kmph) design speeds and normal operating speeds of 160 kmph.

In addition, it has signed a Memorandum of Understanding (MoU) with Nuclear Power Corporation of India Limited (NPCIL) to jointly pursue opportunities in the nuclear power plant sector based on Pressurized Heavy Water Reactor (PHWR) technology.

BHEL should do well, given the large order backlog and strong inflows in Q4. However, Q4 results will likely announce a year-over-year decline in profit after tax (PAT) even though Ebitda should grow by double digits.

According to the technical chart, the stock took profits near the upper end of the Bollinger Bands on the daily chart at Rs 85.68. Therefore, this level remains a key resistance for the stock. On the downside, trendline support holds Rs 77.88, followed by Rs 76, which is its 20-day moving average.