BHEL Shares May Surge Up to 40% in the Next 12 Months, Say Analysts

Analysts are optimistic about Bharat Heavy Electricals Ltd. (BHEL) due to the company’s strong order inflow in thermal power projects and emerging opportunities in other sectors.

Recent Developments:
BHEL recently secured a ₹6,100 crore order from NTPC to develop a 1600-megawatt thermal power project at Sipat. In August, it bagged another massive ₹11,000 crore contract from Adani Power to build three supercritical thermal power plants in Kawai, Rajasthan, and Mahan, Madhya Pradesh.

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Brokerage Opinions:
ICICI Securities has maintained its “buy” recommendation on BHEL with a target price of ₹370, suggesting a 39% potential upside from the last closing price. The brokerage firm highlighted the ongoing demand for thermal power projects in India and noted BHEL’s total order inflow of ₹34,100 crore for FY25 so far, with the company positioned as the lowest bidder for an additional ₹21,000 crore project. ICICI anticipates BHEL’s order inflow for FY25 to reach ₹80,000 crore. It also emphasized BHEL’s diversification efforts, such as winning a ₹23,500 crore contract from Titagarh Rail Systems to supply 80 Vande Bharat trainsets and provide 35 years of maintenance services. This project is expected to enhance BHEL’s experience and attract more Vande Bharat projects.

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Similarly, Antique retained its “buy” rating with a target price of ₹361, citing the company’s strong order pipeline in the power sector and growth potential in sectors like railways, defense, and renewable energy. The firm projects cumulative order inflows of ₹2.2 lakh crore from FY24 to FY26, along with the execution of an existing ₹1.5 lakh crore order book. Antique forecasts a remarkable 156% annual earnings growth for BHEL between FY24 and FY27.

Stock Movement:
BHEL shares rose by 2.61%, closing at ₹273.10 on Monday.