Bharat Heavy Electricals Ltd.
Infrastructure · NSE
52-week range
₹205 – ₹409
From 52w high
-1.1%
RSI (14)
83.9
vs SMA 50 / 200
↑ 50 · ↑ 200
BHEL, the state-owned heavy electrical equipment manufacturer, trades at 404.6 — up 86.2% over 12 months and within 1.1% of its 52-week high — on the back of reported 18% revenue growth and 75,000 crore in order inflows for FY26. Trailing PE is 87.5 against a forward PE of 31.5, reflecting market pricing of a continued earnings ramp. ROE of 6.3% and debt-to-equity of 31.3 represent the weakest capital-return and highest leverage profile among comparable infrastructure peers with available data.
- ✓Revenue growth of 36.9% over 5 years and reported 18% growth in the most recent quarter indicate a meaningful acceleration in topline execution relative to BHEL historical norms.
- ✓Earnings growth of 156.4% over 5 years, even from a low base, signals a transition from near-breakeven to positive profitability over the period.
- ✓Price is 38.3% above the 50-DMA (291.9) and 53.6% above the 200-DMA (263.4), reflecting sustained positive price momentum over both medium and long lookback windows.
- ✓Order inflow of 75,000 crore reported for FY26 provides a visible revenue pipeline, with forward PE of 31.5 implying the market has partially discounted the earnings ramp.
- ✗ROE of 6.3% is the lowest among infrastructure peers with available data (LT: 15.5%, CGPOWER: 19.6%), and no year in the historical record shows ROE above 15%, indicating persistent below-cost-of-equity capital returns.
- ✗Debt-to-equity of 31.3 is on a rising trend with FCF positive in only 2 of the recorded years; limited free cash generation raises questions about the capacity to fund a large order book without further balance-sheet stress.
- ✗Quality score of 39 and consistency score of 45 rank 4th of 6 peers on quality, reflecting below-median earnings reliability relative to the infrastructure sector peer set.
- ✗RSI of 83.9 places the stock in overbought territory, and nearest identified support levels (271.5 and 250.7) are 33 to 38% below current price, indicating that the nearest historically tested demand zones are at a substantial distance from current trading levels.
- ·BHEL reported 18% revenue growth in its most recent quarter; the stock gained for 12 consecutive sessions and reached a 14-year high, trading 33% above the price at which the government conducted an OFS (Business Standard, Apr 2026).
- ·Management guided to 75,000 crore in order inflows for FY26, providing a visible multi-year execution backlog in the power and industrial equipment segment (T&D India, Apr 2026).
- ·At least one analyst cited by CNBC TV18 (Apr 2026) holds a bearish view, characterising strong execution as already reflected in the price, representing a public dissent from the prevailing positive news sentiment at the time of the rally.
- ?Given that forward PE has compressed to 31.5 from a trailing PE of 87.5, what earnings trajectory is implicitly assumed, and what are the risks if order execution slips or margins do not expand as the backlog converts to revenue?
- ?Does the rising debt-to-equity trend and limited FCF history reflect the capital-intensity of large infrastructure projects, or a structural inability to generate surplus cash, and how does BHEL balance sheet compare to peers executing similar order books?
- ?The 5-year earnings growth of 156.4% is striking, but how much of that growth originated from a recovery off a near-zero profit base versus genuine operating leverage, and is the current profitability level (4.7% margin) sustainable at scale?
- ?How concentrated is the 75,000-crore order book by customer type (government or PSU versus private), and what proportion of those orders have been formally awarded versus announced at the intent stage?
PE
87.5
Forward PE
31.5
ROE
+6.3%
Profit margin
+4.7%
D/E
31.31
Dividend yield
+0.1%
Quality score
39/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.