BHEL shares at Rs 300 or Rs 540? Targets by CLSA, Macquarie, Morgan Stanley, UBS, others
Macquarie maintained its 'Underperform' rating on BHEL with an unchanged target price of Rs 315. CLSA retained its 'Reduce' rating while raising its target price to Rs 306 from Rs 282 in May.
- Jul 17, 2026,
- Updated Jul 17, 2026 8:49 AM IST
Stock analysts are divided on the outlook for Bharat Heavy Electricals Ltd (BHEL) despite the Maharatna PSU reporting a strong June quarter that comfortably beat Street estimates. While some brokerages highlighted the rebound in BHEL's Ebitda margin to 6.5 per cent, ending a multi-year streak of loss-making June quarters and signalling improving execution and operating leverage, others cautioned that the stock's 67 per cent rally over the past six months has left valuations stretched. Against a closing of Rs 440.10 apiece on Thursday, BHEL shares have analyst targets in the wide range of Rs 300-540, Bloomberg data compiled by Business Today suggests.
BHEL posted a sharp earnings surprise, with profit after tax (PAT) exceeding consensus expectations on the back of 40 per cent year-on-year (YoY) revenue growth. Order inflows nearly doubled to Rs 26,700 crore, up 99 per cent YoY on a low base, taking the order backlog to Rs 2.6 lakh crore, equivalent to 7.7 times its FY26 sales.
"As a larger share of newer, relatively higher-margin private projects enters the revenue-recognition phase, we reckon BHEL’s turnaround shall become more evident H2FY27E onwards. Furthermore, Yadadri Unit 3 and Patratu Unit 2 were commissioned during the quarter," Nuvama Institutional Equities said.
This brokerage retained ‘Buy’ on BHEL, valuing it at 38 times estimated FY28 earnings per share, in line with peers and at a 10 per cent discount to its peak multiple, implying a target of Rs 530 from Rs 450 earlier.
Among global brokerages, Macquarie maintained its 'Underperform' rating on BHEL with an unchanged target price of Rs 315. Sustainability of the performance is key, it said. CLSA retained its 'Reduce' rating while raising its target price to Rs 306 from Rs 282 in May, the lowest among the dozen brokerages that have issued fresh reports on the PSU. UBS reiterated its 'Neutral' rating with a target price of Rs 460, while Morgan Stanley maintained its 'Overweight' rating with a target price of Rs 444.
Among domestic brokerages, ICICI Securities reiterated its 'Buy' rating with a target price of Rs 520 while IIFL Securities suggested a target of Rs 502, with an 'Add' call. 360 ONE Capital's Kunal Sheth has the highest target price on BHEL at Rs 537 among the dozen brokerages that have released fresh reports on the stock so far. Dolat Capital finds the stock worth Rs 525.
"We marginally tweak our FY27/FY28 estimates and introduce FY29E estimates. We roll over our valuation on the stock to Sept'29 EPS and maintain BUY rating on the stock with a revised target price of Rs 527 (earlier Rs 430), valuing the company at 32x 1 HFY29 EPS (earlier 31 x its FY28E EPS)," said Antique Stock Broking.
JPMorgan reportedly said that the sharp recent stock outperformance offers a good exit opportunity in the deeply cyclical stock, especially given that best of thermal power plant ordering cycle is already behind us.
Stock analysts are divided on the outlook for Bharat Heavy Electricals Ltd (BHEL) despite the Maharatna PSU reporting a strong June quarter that comfortably beat Street estimates. While some brokerages highlighted the rebound in BHEL's Ebitda margin to 6.5 per cent, ending a multi-year streak of loss-making June quarters and signalling improving execution and operating leverage, others cautioned that the stock's 67 per cent rally over the past six months has left valuations stretched. Against a closing of Rs 440.10 apiece on Thursday, BHEL shares have analyst targets in the wide range of Rs 300-540, Bloomberg data compiled by Business Today suggests.
BHEL posted a sharp earnings surprise, with profit after tax (PAT) exceeding consensus expectations on the back of 40 per cent year-on-year (YoY) revenue growth. Order inflows nearly doubled to Rs 26,700 crore, up 99 per cent YoY on a low base, taking the order backlog to Rs 2.6 lakh crore, equivalent to 7.7 times its FY26 sales.
"As a larger share of newer, relatively higher-margin private projects enters the revenue-recognition phase, we reckon BHEL’s turnaround shall become more evident H2FY27E onwards. Furthermore, Yadadri Unit 3 and Patratu Unit 2 were commissioned during the quarter," Nuvama Institutional Equities said.
This brokerage retained ‘Buy’ on BHEL, valuing it at 38 times estimated FY28 earnings per share, in line with peers and at a 10 per cent discount to its peak multiple, implying a target of Rs 530 from Rs 450 earlier.
Among global brokerages, Macquarie maintained its 'Underperform' rating on BHEL with an unchanged target price of Rs 315. Sustainability of the performance is key, it said. CLSA retained its 'Reduce' rating while raising its target price to Rs 306 from Rs 282 in May, the lowest among the dozen brokerages that have issued fresh reports on the PSU. UBS reiterated its 'Neutral' rating with a target price of Rs 460, while Morgan Stanley maintained its 'Overweight' rating with a target price of Rs 444.
Among domestic brokerages, ICICI Securities reiterated its 'Buy' rating with a target price of Rs 520 while IIFL Securities suggested a target of Rs 502, with an 'Add' call. 360 ONE Capital's Kunal Sheth has the highest target price on BHEL at Rs 537 among the dozen brokerages that have released fresh reports on the stock so far. Dolat Capital finds the stock worth Rs 525.
"We marginally tweak our FY27/FY28 estimates and introduce FY29E estimates. We roll over our valuation on the stock to Sept'29 EPS and maintain BUY rating on the stock with a revised target price of Rs 527 (earlier Rs 430), valuing the company at 32x 1 HFY29 EPS (earlier 31 x its FY28E EPS)," said Antique Stock Broking.
JPMorgan reportedly said that the sharp recent stock outperformance offers a good exit opportunity in the deeply cyclical stock, especially given that best of thermal power plant ordering cycle is already behind us.