BHEL shares up 60% in a month; still a ‘Buy’ or book profit, and exit?

BHEL shares target price: State-run capital goods major Bharat Heavy Electricals Ltd (BHEL) has been on a roll lately, as the stock surged to its new peaks on Monday, May 04, post its quarterly earnings. The stock has gained as much as 60 per cent in the last one month, rewarding investors. Brokerage firms, adding to the momentum, remain largely positive on it.
 

BHEL share price movement

Shares of BHEL rose another 3 per cent to Rs 388.20 on Tuesday, against its previous close at Rs 376.95 on Monday, commanding a total market capitalization close to Rs 1.35 lakh crore. The stock hit its new record high at Rs 398.95 on Monday. The stock has gained nearly 60 per cent from its price at Rs 245.70 on April 06, 2026.

Shares of BHEL have gained nearly 70 per cent in the last one year, while the stock has soared nearly 4 times in the last three years. It has delivered a 600 per cent return from its levels at Rs 57.80 five years ago. The stock has nearly delivered a 20 times returns to the investors from its covid-19 lows around Rs 20 in March 2020.
 

BHEL Q4 results

Bharat Heavy Electricals reported a 156 per cent YoY surge in the net profit at Rs 1,296.1 crore, while surged 37.2 per cent YoY to Rs 12,310.1 crore for the March 2026 quarter. Ebitda zoomed 111 per cent YoY to Rs 1,753.4 crore, with its margins expanding 500 basis points to Rs 14.2 per cent for the quarter.

BHEL’s growth during the quarter was driven by strong execution in its power segment which led to the sharp improvements in margins as well. Beside this The multibagger PSU player announced a final dividend of Rs 1.4 per share for its shareholders, highest amount in nearly 10 years.
 

BHEL target prices

BHEL reported a strong beat to consensus earnings. While the order inflow has been strong over the past three years, the profitability was subdued. With the project execution picking pace and a 7 times book to bill, we expect execution to grow at 13 per cent CAGR over FY 26-28 and profitability to improve further said ICICI Securities.

“Stock has re-rated over the last 3 years on back of strong order inflows; we expect further re-rating on back of further increase in revenues and continued accretion in order inflow in FY27E. We maintain ‘buy’ with a revised target price of Rs 450 (from Rs 370 earlier),” it added.

BHEL secured robust order inflows and The outlook remains favourable, with ~10+ GW of ordering expected over FY27-28, said Antique Stock Broking. It expects operating performance to improve further in FY27 as recently secured higher-margin orders enter execution, driving a meaningful improvement in profitability and forecasted healthy order inflows over the next two years.

“We retain our earnings estimates and value the stock at Rs 430, based on 31 times FY28E earnings. Our revised multiple implies a 20 per cent premium to L&T’s FY28 implied P/E, which we believe is justified given BHEL’s stronger growth outlook and improving return ratios from FY27E onwards. Our target multiple remains at a discount to Thermax’s valuation,” it adds with a ‘buy’ tag.

BHEL’s OCF increased from Rs 2,200 crore to Rs 5,800 crore, driven by sharp improvement in NWC. The company booked Rs 75,900 crore of order during FY26, taking total order book to Rs 2,40,000 crore, said JM Financial, expecting BHEL BHEL to maintain order inflows of Rs 60,000–70,000 crore bn each in FY27 and FY28.

We revise our FY28E EPS to Rs 13.6 considering 100bps improvement in gross margin and increase in interest income due to better OCF. As discussed in Journey of growth and profit begins, we value the stock at an unchanged P/E of 32 times, yielding a revised target price of Rs 435 (Rs 393 earlier),” it added with a buy’ tag.

BHEL has built a large order book, supported by strong demand from India’s power sector, which provides strong revenue visibility for the next several years. Its entry into Oil & Gas EPC, growing space sector partnerships with ISRO, and defense export opportunities further widen its total addressable market, said BP Wealth.

“India’s continued focus on thermal power capacity addition, modernization of state power utilities, expansion of the railway network, and rising indigenization in defense procurement all create a structurally favorable demand environment for BHEL. We give the stock a ‘buy’ rating arriving at a target price of Rs 410,” it adds.