BHEL zooms 14% on reports CLSA upgrades to 'Buy' from 'Sell'

Earlier this month, reports suggested that Centre could reduce its stake in the heavy equipment manufacturer to 26 per cent from 63.17 per cent as part of its strategic divestment.

State-owned Bharat Heavy Electricals Ltd (BHEL) zoomed 14 per cent to Rs 61.30 apiece on the BSE on Wednesday after global brokerage firm CLSA upgraded the stock to 'Buy' from 'Sell' owing to the benefits that the company could reap due to government's stake sale. 

According to reports, the brokerage sees "limited risk" in the stock and believes the "company has a lot to gain from a strategic partner". If the divestiture fails, there could be risks to market price, it said. While the brokerage believes the "strategic sale could unclock value" for the company, it has cut its FY20