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Bharat Heavy Electricals Limited
(BHEL)
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Rating:60Neutral
Price Target:
₹487.00
▲(12.47% Upside)
Action:Reiterated
Date:08/09/26
Score is primarily supported by improving financial performance (revenue and earnings recovery with manageable leverage), but is held back by an expensive valuation (high P/E and low yield) and only neutral-to-mixed near-term technicals despite a longer-term uptrend.
Positive Factors
Revenue and earnings recovery
The sharp FY2026 recovery indicates improving demand and execution across BHEL’s business after weaker prior years. If maintained, stronger revenue and earnings can rebuild internal funding capacity, support investment, and improve the company’s ability to compete for large infrastructure contracts.
Negative Factors
Moderate and pressured margins
BHEL’s earnings recovery has not yet translated into robust or consistently expanding profitability. A moderate net margin and lower gross margin leave less protection against cost pressure, adverse project mix, or execution challenges, making durable earnings improvement dependent on better margin stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings recovery
The sharp FY2026 recovery indicates improving demand and execution across BHEL’s business after weaker prior years. If maintained, stronger revenue and earnings can rebuild internal funding capacity, support investment, and improve the company’s ability to compete for large infrastructure contracts.
Read all positive factors
Bharat Heavy Electricals Limited (BHEL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.41T
Dividend Yield0.47%
Average Volume (3M)622.98K
Price to Earnings (P/E)49.0
Beta (1Y)1.56
Revenue Growth29.08%
EPS Growth415.38%
CountryIN
Employees42,880
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)8.27
Shares Outstanding3,482,063,500
10 Day Avg. Volume637,310
30 Day Avg. Volume622,980
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)3.27
Price to Sales (P/S)2.53
P/FCF Ratio16.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹298.50Price Target Upside-31.06% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)10.02
Revenue Forecast (FY)₹433.85B
Bharat Heavy Electricals Limited Business Overview & Revenue Model
Company Description
Bharat Heavy Electricals Limited stands as a leading global engineering and manufacturing enterprise, organizing its extensive operations across two primary divisions: Power and Industry. The company provides a vast array of products and services ...
How the Company Makes Money
BHEL primarily makes money by executing engineering, procurement and construction (EPC) and equipment-supply contracts for large infrastructure and industrial projects, and by providing high-margin aftermarket services to the installed base of equ...
Bharat Heavy Electricals Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 377.82B | 337.82B | 273.55B | 229.21B | 221.36B | 201.53B |
| Gross Profit | 88.83B | 40.16B | 85.10B | 61.13B | 58.36B | 53.60B |
| EBITDA | 45.49B | 32.11B | 17.66B | 12.23B | 14.97B | 11.41B |
| Net Income | 28.79B | 16.00B | 5.34B | 2.82B | 6.37B | 4.46B |
Balance Sheet | ||||||
| Total Assets | 768.41B | 761.86B | 680.83B | 588.86B | 569.20B | 562.44B |
| Cash, Cash Equivalents and Short-Term Investments | 104.21B | 118.67B | 70.57B | 54.59B | 64.13B | 71.44B |
| Total Debt | 60.18B | 81.87B | 90.15B | 88.56B | 54.54B | 48.30B |
| Total Liabilities | 500.88B | 500.39B | 433.61B | 345.63B | 325.42B | 297.37B |
| Stockholders Equity | 267.52B | 261.47B | 247.22B | 244.39B | 243.78B | 265.07B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 52.27B | 19.11B | -39.45B | -9.29B | 4.91B |
| Operating Cash Flow | 0.00 | 58.16B | 21.92B | -37.13B | -7.41B | 6.60B |
| Investing Cash Flow | 0.00 | -37.23B | -27.31B | 13.31B | 14.80B | -11.18B |
| Financing Cash Flow | 0.00 | -10.97B | -8.57B | 26.56B | 889.60M | -3.29B |
Bharat Heavy Electricals Limited Technical Analysis
Negative
433.00
Price Trends
423.89
Negative
413.12
Negative
357.68
Positive
Market Momentum
-6.98
Positive
43.64
Neutral
26.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BHEL, the sentiment is Negative. The current price of 433 is above the 20-day moving average (MA) of 423.80, above the 50-day MA of 423.89, and above the 200-day MA of 357.68, indicating a neutral trend. The MACD of -6.98 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 26.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BHEL.
Bharat Heavy Electricals Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹124.52B | 33.01 | ― | 0.45% | 10.85% | -4.06% | |
65 Neutral | ₹1.20T | 36.66 | ― | 0.53% | -12.45% | 12.44% | |
62 Neutral | ₹144.84B | 43.02 | ― | 0.93% | 17.70% | -1.58% | |
60 Neutral | ₹1.41T | 49.01 | ― | 0.47% | 29.08% | 415.38% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹113.53B | 1.31 | ― | 0.67% | 4.63% | -4.40% | |
54 Neutral | ₹378.96B | 60.40 | ― | 0.63% | 4.68% | -11.57% |
* General Sector Average
IN:BHEL
Bharat Heavy Electricals Limited
405.00
160.24
65.47%
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Bharat Heavy Electricals Limited Corporate Events
BHEL Board Clears Unaudited Q2 and Half-Year FY2026 Results with Clean Review
Oct 14, 2026
Bharat Heavy Electricals Limited has announced that its Board of Directors approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. The approval was given at a board meeting held ...
BHEL Opens Special Window for Transfer and Demat of Physical Securities
Oct 5, 2026
Bharat Heavy Electricals Limited has notified stock exchanges that it has published newspaper advertisements in Financial Express and Jansatta announcing the opening of a special window for transfer and dematerialisation of physical securities. Th...
BHEL Clears Rs 65 Crore Equity Infusion Into NTPC Joint Venture NBPPL
Sep 14, 2026
BHEL’s board has approved an additional equity investment of Rs 65 crore, to be infused in one or more tranches into NTPC BHEL Power Projects Private Limited, its 50:50 joint venture with NTPC. NBPPL, formed in 2008 to execute EPC contracts ...
BHEL Announces Superannuation of Senior Corporate Office Executive
Aug 25, 2026
Bharat Heavy Electricals Limited has announced a change in senior management, with the superannuation of Shri Sumeet Salhotra, General Manager and Head (COC) at the Corporate Office in Noida, effective 24 August 2026. The transition, disclosed und...
BHEL Ties Up With Norway’s Hystar to Boost PEM Electrolyser Capability for Green Hydrogen
Aug 13, 2026
BHEL has entered into a strategic collaboration agreement with Norway-based Hystar AS to develop and supply proton exchange membrane (PEM) electrolyser systems for green hydrogen projects, marking an international tie-up aimed at phased indigeniza...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.