BHEL rallies 44% in 4 months, hits 17-mth high; brokerages see more upside

BHEL stock is well placed to gain from the need for building base load thermal coupled with strong revenue visibility in the medium term, believe analysts.

Bharat Heavy Electricals (BHEL) share price today

 

Shares of Bharat Heavy Electricals (BHEL) hit a 17-month high of ₹305.85, gaining 3 per cent on the BSE in Wednesday’s intra-day trade in an otherwise weak market. In the past four months, the stock price of the public sector undertaking (PSU) company has zoomed 44 per cent. 

 

The stock now trades close to its highest level since August 2024. It had hit a record high of ₹390 on November 7, 2007.

 

At 12:52 PM; BHEL share price was quoting 2 per cent higher at ₹302.75, as compared to 0.37 per cent decline in the BSE Sensex. The average trading volumes at the counter nearly doubled, with a combined 8.82 million equity shares changing hands on the NSE and BSE.  FOLLOW LATEST STOCK MARKET UPDATES LIVE

 

BHEL to announce Q3 results on January 19, 2026

 

BHEL informed the stock exchanges that a meeting of the board of directors of the company will be held on January 19, 2026, inter alia, to approve the unaudited financial results of the company for & upto the quarter ended December 31, 2025 (Q3FY26).

 

As on September 30, 2025, BHEL total outstanding order book position stood at ₹2.19 trillion, of which ₹1.75 trillion or 80 per cent are from the power sector and the remaining ₹44,545 crore from the industry including exports.

 

Rising domestic consumption, along with the government’s push for manufacturing and infrastructure development is expected to drive the energy demand in the near future. This coupled with thrust on energy security and affordability, is expected to propel the addition of thermal based power which offers reliable base-load generation. The company is working towards catering to this upcoming demand by strengthening EPC capabilities, facilitating vendors, standardizing drawings etc, the company said.

 

The stock is well placed to gain from the need for building base load thermal coupled with strong revenue visibility in the medium term, according to analysts.  ALSO READ | IDFC First rises as Nomura starts coverage with 23.5% upside forecast

JM Financial sees 19% upside in BHEL’s stock price

 

Analysts at JM Financial Institutional Equities remain optimistic about BHEL’s performance (execution, margins) and maintain ‘BUY’ on the stock with a target of ₹363 based on a valuation rollover to Mar’28E EPS.

 

Renewable intermittency, limited utility-scale storage capacity (currently <5GW) and rising evening peak demand make thermal generation critical to maintaining grid frequency and stability and ensuring uninterrupted supply.

 

According to the brokerage firm, India has 220GW of coal-fired capacity, which is targeted to increase to 300GW by 2035E—40GW under construction, 23GW recently awarded and 17GW at tendering stage. India will require coal-fired power generation capacity of 340GW by 2047E, implying a net addition of 40GW by 2047E. 

 

Since ~50GW of plants—mostly with sub-critical technology (high cost, high emissions)—would exhaust their useful life by 2035E and another 88GW by 2047E, India would require additional 170–180GW of new projects just to maintain its installed base of 340GW by 2047E. 

 

Furthermore, a likely miss on the ‘100GW nuclear by 2047’ ambition may lead to an increase in targets for thermal power additions. That said, any scalable success in renewable energy (RE) + storage as base load may change the calculus of coal demand, analysts said in the company update.  ALSO READ | Gujarat Kidney shares rise 10% in trade; here's what's boosting rally? 

Meanwhile, corporate India’s ongoing capex super-cycle is public capex and policy-driven (first such in last six-to-seven decades) while private capex is confined to select new-age areas namely – RE/thermal power gen, transmission & distribution (T&D), aerospace & defence, railways, electronics, data centres, green hydrogen, etc. Analysts at InCred Equities believe premium valuations are selectively justified for sectors/companies showcasing high order inflow (OI)/profit delivery.

 

Analysts at ICICI Securities expect BHEL’s FY26E OI to be > ₹90,000 crore as it has already announced OI of ₹35,300 crore and is L1 in ₹40,000 crore (estimate). The brokerage firm believes execution ramp up was due to teething issues for new built ups. The issues are ironing out and analysts expect sharp execution ramp up in FY27E. The new built-up pipeline (yet to be awarded) remains strong at ~20GW. Moreover, India may need coal and nuclear plants considering retirement of coal-based plants to meet the base load demand. All in all, analysts believe fundamentals are improving; reiterate BUY with a revised target price of ₹370.  ==============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.