Bharat Heavy Electricals Ltd.
NSE: BHELBharat Heavy Electricals Ltd.: A 30-second snapshot
BHEL (Bharat Heavy Electricals Ltd.) is a government-owned capital goods and power equipment manufacturer trading at 413.15, up 77.7% over 12 months and near its 52-week high with a 1.1% drawdown. The trailing PE of 86.8 and forward PE of 31.1 reflect the market pricing in a significant improvement cycle anchored by a 2.4 lakh crore order book and FY26 revenue growth of 18% YoY to 32,350 crore. Core financial metrics — ROE of 6.3%, profit margin of 4.7%, and D/E of 31.3 — remain substantially below infrastructure sector peers.
P/E
86.8
Forward P/E
31.1
ROE
+6.3%
Debt / Equity
31.31
Profit Margin
+4.7%
Div. Yield
+0.1%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
51/100
News
8 headlines · 6 positive · 1 negative
BHEL shares soar 13% after Q4 net profit rockets 156% YoY to Rs 1,290 crore, revenue up 37% - The Economic Times
The Economic Times
BHEL sees Rs.75,000-crore order inflows in FY26 - T&D India
T&D India
BHEL's revenue rises 18% to ₹32,350 crore; order book swells to ₹2.4 lakh crore on strong power demand - CNBC TV18
CNBC TV18
BHEL hits 14-year high, gains for 12th straight day; up 33% from OFS price - Business Standard
Business Standard
BHEL FY26 turnover rises 18% to ₹32,350 crore - ETEnergyworld.com
ETEnergyworld.com
Recent context
- ·Q4 FY26 results (reported May 2026) showed net profit of 1,290 crore (+156% YoY) and revenue of 32,350 crore (+18% YoY), triggering a 13% single-day price move per Economic Times coverage.
- ·BHEL disclosed FY26 order inflows of 75,000 crore and an order book of 2.4 lakh crore, citing strong power sector demand; the stock was reported at a 14-year high following a 12-session consecutive gain streak.
- ·Mean analyst rating of 2.8 across 20 analysts (1-5 scale, lower = more constructive) sits between the most and least constructive ends of the scale, reflecting divided analyst opinion despite the positive results cycle.
Strengths
- +Order book of 2.4 lakh crore and FY26 order inflows of 75,000 crore represent a structural pipeline, with 5-year revenue growth of 36.9% and 5-year earnings growth of 156.4% reflecting a recovery from a prolonged trough.
- +Q4 FY26 net profit rose 156% YoY to 1,290 crore alongside 18% revenue growth, driving the stock to a reported 14-year price high during the period covered by recent headlines.
- +The stock trades above both its 50-DMA (303.13) and 200-DMA (266.43), with current price 36% above the 50-DMA and 55% above the 200-DMA, reflecting sustained momentum across multiple timeframes.
- +Forward PE of 31.1 is materially lower than the trailing PE of 86.8, implying the consensus earnings estimate embeds a significant profitability step-up over the next 12 months.
Weaknesses
- −Debt-to-equity of 31.3 is exceptionally elevated for an industrial manufacturer, debt trend is classified as rising, and FCF has been positive in only 2 of the available years — indicating limited internally-generated cash relative to the balance sheet load.
- −ROE of 6.3% is the lowest among the 3 infrastructure peers with available data (L&T: 15.5%, CG Power: 19.6%), and the quality score of 39/100 ranks 4th of 6 peers, reflecting below-median capital efficiency and earnings quality.
- −RSI of 78.8 is in overbought territory after a 49.6% 3-month price advance; support levels at 247-251 are approximately 39-40% below current price, with no resistance levels identified above current price in the data.
- −Profit margin of 4.7% and consistency score of 45 reflect thin operating leverage; zero years with ROE above 15% in the recorded history suggests the current earnings inflection has not yet translated into durable high-return capital deployment.
Open questions
- ?Does the forward PE compression from 86.8 to 31.1 rest on achievable margin assumptions, and what execution or commodity-cost risks could prevent the implied profitability step-up?
- ?How has BHEL historically managed its debt load through capital expenditure cycles, and does the current rising debt trend reflect working capital growth aligned with order execution or structural balance sheet deterioration?
- ?Given that support levels are 39-40% below the current price after a 77.7% 12-month move, what historical precedents exist for BHEL's price behaviour following similarly extended momentum periods?
- ?Does the 2.4 lakh crore order book represent a mix-shift toward higher-margin segments (e.g., nuclear, defence, renewables), or does it reflect the same low-margin power equipment business that produced the 4.7% profit margin?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BHEL | Bharat Heavy Electricals Ltd.You're viewing | 86.8 | +6.3% | 39 |
| Industry avg | across 5 peers | 69.5 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.0 | — | 57 |
| ABB | ABB India Ltd. | 87.1 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹413.15
SMA 50
₹303.13
SMA 200
₹266.43
RSI (14)
78.8 (overbought)
From 52w high
-1.1%
1Y return
+77.7%
3M return
+49.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity ratio of 31.3 is exceptionally elevated for an industrial manufacturer; debt trend is rising and free cash flow has been positive in only 2 of the available years, indicating limited internal cash generation capacity relative to obligations.
- mediumROE of 6.3% ranks 3rd of 3 peers with available data (L&T: 15.5%, CG Power: 19.6%), and trailing PE of 86.8 embeds a steep premium against a quality score of 39/100 — ranked 4th of 6 peers in the infrastructure sector.
- mediumRSI of 78.8 is in overbought territory after a 49.6% price gain over 3 months. Nearest support levels (250.7-247.2) are approximately 39-40% below the current price of 413.15, indicating a wide gap between current price and tested demand zones.
- lowConsistency score of 45 and zero years with ROE above 15% in the recorded history reflect below-median earnings quality; profit margin stands at 4.7%, the lowest implied among peers with available data.
Cross-section contradictions
- BHEL is up 77.7% over 12 months and sits 1.1% below its 52-week high, yet ROE is 6.3% and FCF has been positive in only 2 of the available years. The price trajectory implies a forward re-rating on order-book expansion rather than demonstrated capital efficiency.
- News sentiment is 6 positive vs 1 negative across 8 articles, including a 156% YoY Q4 profit jump and 2.4 lakh crore order book, yet the mean analyst rating of 2.8 across 20 analysts (1-5 scale, lower = more constructive) is materially less constructive than the positive news tone suggests.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days