Rs 28 to Rs 272: Multibagger defence stock hits 52-week high, more upside ahead?
The multibagger stock is trading near the overbought zone, signals its relative strength index (RSI), which stands at 68.8.
- Nov 10, 2025,
- Updated Nov 10, 2025 4:03 PM IST
Shares of Bharat Heavy Electricals Ltd (BHEL) hit their 52-week high on Monday amid a rally in the broader market. The defence sector stock rose over 3% to a high of Rs 274.45 today against the previous close of Rs 263.70. Market cap of the firm climbed to Rs 94,886 crore.
The multibagger stock is trading near the overbought zone, signals its relative strength index (RSI), which stands at 68.8. It has gained 869% in five years and risen 262% in three years.
BHEL shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
BHEL shares fell to a 52-week low of Rs 176 on March 3, 2025. Since then, the stock has zoomed 55% from its 52 week low.
PL Capital has a price target of Rs 250 on the stock.
"The stock is currently trading at a P/E of 25.2x/19.0x on FY27/28E earnings. We roll forward to Sep’27E and maintain our ‘Hold’ rating valuing the stock at a PE of 22x Sep’27E (22x Mar’27E) with a revised TP of Rs 250 (Rs 215 earlier)," said PL Capital.
"We believe that the execution is showing some sign of revival despite not keeping pace with the strong order wins in recent years, however in the long run 1) large thermal power order pipeline, 2) diversification into railways, defense, green hydrogen, coal gasification, etc., and 3) growing spares & services business could augurs well for BHEL. However, execution pace and balance sheet health continues to be key monitorable," added the brokerage.
JM Financial has a price target of Rs 320 on the defence stock. JM expects BHEL to book orders worth Rs 600-700 bn during FY26 and report total order book of at least Rs 2,250 bn on Mar’26.
The brokerage believes execution of current orders will further pick up 3QFY26 onwards and revenue/ EPS might reach Rs 489 bn/Rs 12.7 in FY28, which has upside risk if new ordering accelerates and/or target increases further. "We continue to maintain BUY with a revised target price of INR 320 (30x Sep’27 EPS)," said the brokerage.
In Q2, the state-run engineering major posted a net profit of Rs 368 crore against Rs 96.7 crore in the same period last year.
Revenue rose 14.1% year-on-year to Rs 7,511 crore. EBITDA more than doubled to Rs 580.8 crore in Q2 from Rs 275 crore a year earlier. Operating margin expanded to 7.7%, beating both the 4.2% recorded last year and the 2.8% projected by the Street.
Shares of Bharat Heavy Electricals Ltd (BHEL) hit their 52-week high on Monday amid a rally in the broader market. The defence sector stock rose over 3% to a high of Rs 274.45 today against the previous close of Rs 263.70. Market cap of the firm climbed to Rs 94,886 crore.
The multibagger stock is trading near the overbought zone, signals its relative strength index (RSI), which stands at 68.8. It has gained 869% in five years and risen 262% in three years.
BHEL shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
BHEL shares fell to a 52-week low of Rs 176 on March 3, 2025. Since then, the stock has zoomed 55% from its 52 week low.
PL Capital has a price target of Rs 250 on the stock.
"The stock is currently trading at a P/E of 25.2x/19.0x on FY27/28E earnings. We roll forward to Sep’27E and maintain our ‘Hold’ rating valuing the stock at a PE of 22x Sep’27E (22x Mar’27E) with a revised TP of Rs 250 (Rs 215 earlier)," said PL Capital.
"We believe that the execution is showing some sign of revival despite not keeping pace with the strong order wins in recent years, however in the long run 1) large thermal power order pipeline, 2) diversification into railways, defense, green hydrogen, coal gasification, etc., and 3) growing spares & services business could augurs well for BHEL. However, execution pace and balance sheet health continues to be key monitorable," added the brokerage.
JM Financial has a price target of Rs 320 on the defence stock. JM expects BHEL to book orders worth Rs 600-700 bn during FY26 and report total order book of at least Rs 2,250 bn on Mar’26.
The brokerage believes execution of current orders will further pick up 3QFY26 onwards and revenue/ EPS might reach Rs 489 bn/Rs 12.7 in FY28, which has upside risk if new ordering accelerates and/or target increases further. "We continue to maintain BUY with a revised target price of INR 320 (30x Sep’27 EPS)," said the brokerage.
In Q2, the state-run engineering major posted a net profit of Rs 368 crore against Rs 96.7 crore in the same period last year.
Revenue rose 14.1% year-on-year to Rs 7,511 crore. EBITDA more than doubled to Rs 580.8 crore in Q2 from Rs 275 crore a year earlier. Operating margin expanded to 7.7%, beating both the 4.2% recorded last year and the 2.8% projected by the Street.