BHEL share price: Antique says PSU stock undervalued, has potential for further re-rating
The business outlook for BHEL remains promising, with approximately 35 GW of projects in various stages of planning, clearance, and bidding.
- Oct 1, 2025,
- Updated Oct 1, 2025 11:08 AM IST
Bharat Heavy Electricals Limited (BHEL) has recently secured a major order from Madhya Pradesh Power Generation Company Limited (MPPGCL) worth Rs 15,000 crore (excluding taxes) to set up two thermal power plants: Amarkantak Thermal Power Unit No. 6 (1x660 MW) and Satpura Thermal Power Unit No. 12 (1x660 MW). Antique Stock Broking said that thermal power project (TPP) order finalisation saw a sharp rise in FY25, with over Rs 80,000 crore worth of orders finalised in BHEL’s favour in the power sector.
The business outlook for BHEL remains promising, with approximately 35 GW of projects in various stages of planning, clearance, and bidding, it said adding that the PSU's operational performance to improve from 2HFY26 onwards as recently secured higher-margin orders move into execution.
The brokearge forecast a cumulative order inflow of Rs 3 lakh crore over FY25-28E, which, together with accelerated execution of the existing Rs 2 lakh crore order book, should significantly enhance operational performance. This, in turn, could drive a likely 98 per cent earnings CAGR over FY25-28E. Antique Stock Broking believes the stock remains undervalued and has potential for further re-rating, maintaining a BUY rating with a target price of Rs 302, based on a PE of 26 times H1FY28E earnings.
Antique said BHEL’s latest EPC order from MPPGCL brings its YTD FY26 orders in the power segment to 2,120 MW, valued at Rs 25,000 crore, further strengthening an already robust Rs 2 lakh crore order book at the end of Q1FY26. Antique Stock Broking highlighted that with limited competition in the power equipment manufacturing space, BHEL is well-positioned to benefit. They expect FY26 power sector order inflows to exceed INR 700 billion, with focus now shifting to timely execution of these large projects to deliver strong earnings over FY25-28E.
In the power transmission and distribution (T&D) segment, BHEL has partnered with Hitachi Energy India (HEI) in a consortium that won a large HVDC order from Rajasthan Part I Power Transmission Ltd. (an SPV under Adani Energy Solutions). The project involves designing and executing ±800 kV HVDC LCC terminal stations at Bhadla III and Fatehpur, with an overall size of Rs 25,000 crore, scheduled for completion by FY30. This project will facilitate evacuation of 6 GW of renewable energy from Rajasthan REZs to northern demand centers. Previously, BHEL-HEI had secured the Khavda-Nagpur HVDC project from PGCIL under Phase V (8 GW), expected to be executed by FY29E.
BHEL has a strong presence in the railway segment, supplying a wide range of products and propulsion systems. The Indian Railways plans to invest Rs 9.2 lakh crore over FY26-31E, presenting significant growth opportunities. In consortium with Titagarh, BHEL has already won an 80 trainset order for Vande Bharat propulsion units, with execution expected to gain momentum from FY26. With plans for 4,500 Vande Bharat trainsets by 2047, Antique Stock Broking viewed this as a long-term sustainable growth avenue.
Meanwhile, BHEL also has capabilities in defence, including naval ship guns, armored vehicles, missile systems, aerospace systems, and steam and gas turbines for ships. Antique Stock Broking believes the defence segment will meaningfully contribute to BHEL’s order book in the coming years.
Antique Stock Broking expects BHEL to report an average annual order intake of Rs 70,000 crore during FY25-28E, more than twice the average of Rs 27,400 crore booked during FY12-23. Despite strong execution, the order book is projected to rise to an all-time high of Rs 2.2 lakh crore by FY27. With strong operating leverage, earnings could grow exponentially over the next three years. Antique Stock Broking maintains a Buy recommendation on BHEL with a target price of Rs 302, based on a PE of 26 times H1FY28E earnings.
Bharat Heavy Electricals Limited (BHEL) has recently secured a major order from Madhya Pradesh Power Generation Company Limited (MPPGCL) worth Rs 15,000 crore (excluding taxes) to set up two thermal power plants: Amarkantak Thermal Power Unit No. 6 (1x660 MW) and Satpura Thermal Power Unit No. 12 (1x660 MW). Antique Stock Broking said that thermal power project (TPP) order finalisation saw a sharp rise in FY25, with over Rs 80,000 crore worth of orders finalised in BHEL’s favour in the power sector.
The business outlook for BHEL remains promising, with approximately 35 GW of projects in various stages of planning, clearance, and bidding, it said adding that the PSU's operational performance to improve from 2HFY26 onwards as recently secured higher-margin orders move into execution.
The brokearge forecast a cumulative order inflow of Rs 3 lakh crore over FY25-28E, which, together with accelerated execution of the existing Rs 2 lakh crore order book, should significantly enhance operational performance. This, in turn, could drive a likely 98 per cent earnings CAGR over FY25-28E. Antique Stock Broking believes the stock remains undervalued and has potential for further re-rating, maintaining a BUY rating with a target price of Rs 302, based on a PE of 26 times H1FY28E earnings.
Antique said BHEL’s latest EPC order from MPPGCL brings its YTD FY26 orders in the power segment to 2,120 MW, valued at Rs 25,000 crore, further strengthening an already robust Rs 2 lakh crore order book at the end of Q1FY26. Antique Stock Broking highlighted that with limited competition in the power equipment manufacturing space, BHEL is well-positioned to benefit. They expect FY26 power sector order inflows to exceed INR 700 billion, with focus now shifting to timely execution of these large projects to deliver strong earnings over FY25-28E.
In the power transmission and distribution (T&D) segment, BHEL has partnered with Hitachi Energy India (HEI) in a consortium that won a large HVDC order from Rajasthan Part I Power Transmission Ltd. (an SPV under Adani Energy Solutions). The project involves designing and executing ±800 kV HVDC LCC terminal stations at Bhadla III and Fatehpur, with an overall size of Rs 25,000 crore, scheduled for completion by FY30. This project will facilitate evacuation of 6 GW of renewable energy from Rajasthan REZs to northern demand centers. Previously, BHEL-HEI had secured the Khavda-Nagpur HVDC project from PGCIL under Phase V (8 GW), expected to be executed by FY29E.
BHEL has a strong presence in the railway segment, supplying a wide range of products and propulsion systems. The Indian Railways plans to invest Rs 9.2 lakh crore over FY26-31E, presenting significant growth opportunities. In consortium with Titagarh, BHEL has already won an 80 trainset order for Vande Bharat propulsion units, with execution expected to gain momentum from FY26. With plans for 4,500 Vande Bharat trainsets by 2047, Antique Stock Broking viewed this as a long-term sustainable growth avenue.
Meanwhile, BHEL also has capabilities in defence, including naval ship guns, armored vehicles, missile systems, aerospace systems, and steam and gas turbines for ships. Antique Stock Broking believes the defence segment will meaningfully contribute to BHEL’s order book in the coming years.
Antique Stock Broking expects BHEL to report an average annual order intake of Rs 70,000 crore during FY25-28E, more than twice the average of Rs 27,400 crore booked during FY12-23. Despite strong execution, the order book is projected to rise to an all-time high of Rs 2.2 lakh crore by FY27. With strong operating leverage, earnings could grow exponentially over the next three years. Antique Stock Broking maintains a Buy recommendation on BHEL with a target price of Rs 302, based on a PE of 26 times H1FY28E earnings.