BHEL hits 52-week high before retreating; analysts split as Q1 profit ends eight-year wait

Shares of Bharat Heavy Electricals Limited (BHEL) touched a 52-week high of ₹446.50 on the NSE on Friday morning before pulling back sharply, trading at ₹433.60, down 0.09 per cent from Thursday’s close of ₹435.40, as of 11.25 am. Sell orders dominated the tape, with 72.31 per cent of total traded quantity on the sell side. Over 293 lakh shares had changed hands by mid-morning, with traded value crossing ₹1,293 crore.

The session follows Thursday’s declaration of Q1 FY2026-27 results, which showed the company posting a profit after tax of ₹382 crore, its first profitable first quarter in eight financial years. Revenue from operations jumped 40 per cent year-on-year to ₹7,698 crore, while EBITDA swung to ₹735 crore from a loss of ₹352 crore a year earlier.

The stock has been among the standout performers in its index cohort. BHEL is up 71 per cent over the past year and nearly 49 per cent year-to-date, against the Nifty 50’s negative returns over the same periods. Its three-year return stands at 367 per cent. The stock currently trades at a trailing P/E of 63.87, a valuation that divides the Street.

JPMorgan carried the most cautious view, retaining an Underperform rating with a target price of ₹220. The brokerage argued that the best of the thermal power ordering cycle is behind the company, pointing to a 19 per cent year-on-year fall in FY26 order inflows and a 27 per cent decline in power segment orders. It estimated a further 12 per cent drop in order inflows for FY27.

Macquarie moved to Neutral with a revised target of ₹315, up from ₹250, acknowledging the strong execution but flagging high receivables and the need for sustained improvement in profitability as key risks ahead.

UBS held a Neutral stance with a target of ₹460, noting the 40 per cent revenue growth and EBITDA beat of 51 per cent against its own estimates. It flagged the largest-ever single export order, ₹2,300 crore for gas turbine generator packages, and strong power segment execution with 52 per cent revenue growth as the most notable positives. However, it pointed to moderation in the industry segment’s PBIT margin to 13.6 per cent from 19.3 per cent a year ago.

JM Financial remained the most positive, maintaining a Buy with a target of ₹481. The brokerage highlighted the 202 basis point improvement in gross margins as evidence of a higher share of newer, better-priced contracts entering execution, and noted BHEL is among its top five picks given the expansion of India’s thermal capacity addition target beyond 110 GW.

BHEL’s order book stood at ₹2,60,255 crore at the end of June, up 27 per cent year-on-year.