Record run ends for BHEL stock; price targets indicate mixed signals

BHEL share price: Shares of Bharat Heavy Electricals Ltd (BHEL), which gained 41% in a month, came across high market volatility and correction on Monday as indices crashed post US President Donald Trump rejecting Iran's response to the US peace plan, and Prime Minister Narendra Modi calling for austerity measures amid the West Asia crisis. 

The PSU stock, which hit record highs in the last two sessions (Rs 408.90 on May 8 and Rs 408.35 on May 7, 2026) came under selling pressure today, falling 3% intra day to Rs 393.05 ON BSE. Market cap of BHEL slipped to Rs 1.40 lakh crore. Despite the selling pressure, the PSU stock is still overbought on charts with a RSI of 83.6.  

The multibagger stock gained 395% in three years and zoomed 448% in five years. 

In the current session, BHEL shares closed on a flat note at Rs 402. Market cap of the firm stood at Rs 1.39 lakh crore. Total 10.80 lakh shares of the firm changed hands amounting to a turnover of Rs 43.28 crore. 

The stock looks strong in term of price action as it trades higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day simple moving averages. 

BHEL share price targets 

Brokerage firm Morgan Stanley has an "overweight" rating on the PSU stock. It has raised its price target to Rs 444 from Rs 304 earlier. 

On similar lines, ICICI Securities and Nuvama have a common price target of Rs 450 each. 

On the other hand, global brokerage CLSA has an "underperform" stance on the stock with a price target of Rs 282.

According to the brokerage, BHEL stock has risen on the energy security theme but it does not expect any new orders for the PSU company within this segment.

BHEL is an expensive stock, said CLSA as its order inflow peaked in FY2025. At 51.2 times, its financial year 2027 estimated price-to-earnings. Also, BHEL's quality of growth was not good as gross margins fell 150 basis points and expansion was led by lower non-cash provisions and forex gains.

Another brokerage JPMorgan has an "underweight" rating on BHEL with a price target of Rs 220. It says that the sharp outperformance is a good exit opportunity in a deeply cyclical name, particularly since the best of the thermal power plant ordering cycle is already behind.