BHEL soars 4%, nears 52-week high; brokerages predict up to 29% more upside

BHEL stock outlook: 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.

Bharat Heavy Electricals (BHEL) share price today

 

Shares of Bharat Heavy Electricals (BHEL) moved higher by 4 per cent to ₹287.50 on the BSE in Friday’s intra-day trade on the back of a healthy business outlook.

 

The stock price of the public sector undertaking (PSU) was trading close to its 52-week high of ₹295.20, touched on November 27, 2025. It had hit a record high of ₹390 on November 7, 2007. 

 

BHEL's overview/ outlook

 

BHEL is one of the largest engineering and manufacturing companies of its kind in India engaged in design, engineering, construction, testing, commissioning and servicing of a wide range of products and services with over 180 product offerings to meet the ever-growing needs of the core sectors of the economy.

 

 

BHEL operates in the Power (76 per cent revenue mix) and Industrial (24 per cent) sector largely in India. 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.

 

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. 

 

Brokerages see more upside in BHEL’s stock price

 

In the July to September 2025 quarter (Q2FY26), BHEL delivered a steady performance, driven by strong project execution across thermal, hydro and industrial systems, supported by diversification into renewables, rail transportation and defence manufacturing. 

 

The management remained focused on improving operational efficiency, expanding the clean energy and nuclear portfolio and leveraging digital solutions for smarter project management. Strategic initiatives in EV infrastructure, advanced train protection systems and aerospace components are poised to drive long-term growth visibility. Although, continued execution discipline and working capital optimisation are key near-term priorities, Geojit Investments are positive and upgraded its rating on BHEL stock to 'BUY' from 'HOLD', with a revised target price of ₹329, based on 2.4x FY27E P/S.

 

Meanwhile, analysts at ICICI Securities estimate 50GW of coal-based capacity to be more than 40 years old by FY32. India’s peak demand is likely to be 375GW by FY32, at 6 per cent compound annual growth rate (CAGR) or 330GW at 5 per cent CAGR (as per National Electric Plan, 2022). Anticipating additional peak demand, the government too is looking to add 75GW of storage and 50GW of thermal. Storage is still at a nascent stage with 20 per cent operational capacity >40 years by 2032.

 

In analyst’s opinion, India may, therefore, need to build a stronger arsenal of thermal power plants to ensure smooth energy transition. The brokerage firm’s conviction on the need to add more coal-based thermal capacity was validated when India’s Minister of Power mentioned the need to have 80GW of thermal capacity under construction in order to meet India’s power needs in the future. Thus, analysts believe India may need to add 5GW of coal-based thermal capacity every year for the next few years. The brokerage maintains 'BUY' rating on BHEL with a revised target price of ₹370 (previously ₹324), as roll over to FY28 EPS of ₹12.2/share.  This translates into a potential 29 per cent upside from current levels.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.