BHEL stock hits record high, rises for fifth day; What's driving the rally?

BHEL share price: Stock of Bharat Heavy Electricals Ltd (BHEL) was the top gainer on the BSE capital goods index amid a rally in the broader market today. The rally in the stock came after a breakout from the multiweek consolidation, an analyst said.

BHEL shares rose 5.45% to a record high of Rs 451.65 today against the previous close of Rs 427.60. Market cap of the  firm rose to Rs 1.56 lakh crore. The stock has risen for the fifth straight session.  Total 17.09 lakh shares of the firm changed hands amounting to a turnover of Rs 76.23 crore.

The stock has a beta of 1.15, indicating high volatility in a year. The stock has risen 55% this year and gained 84% in six months. It has risen 614% in five years and gained 250% in three years.

Why is BHEL stock rising 

Chandan Taparia, Head of Derivatives & Technical Research at Motilal Oswal said the stock has given a clear breakout above the Rs 440 zone, breaking out of a multi-week consolidation pattern. The stock price is trading above the 20-DMA, indicating improving short-term momentum. The stock's RSI has turned up sharply from lower levels, supporting the breakout.

"Key levels to watch are upside of Rs 460 and a support level of Rs 440 to Rs 435," added the analyst in a post on X.

Sachin Gupta VP – Technical Research Choice Broking said, "BHEL continues to maintain a highly bullish technical structure, supported by a decisive breakout from its price channel on the daily chart. Rs 425 is the immediate support level and remains crucial for sustaining the prevailing bullish structure. As long as the stock trades above this level, the near-term outlook remains positive, with Rs 480 emerging as the first important price target, followed by Rs 500 as the next upside objective. A sustained move toward and beyond Rs 480 could further strengthen the bullish momentum. Overall, the technical setup favours a positive bias, supported by the channel breakout, volume expansion and strong momentum indicators."

However, global investment bank Jefferies expects the stock to fall to Rs 270 mark in a year, nearly a 40% downside to the current market price.

Meanwhile, JM Financial sees BHEL's Q2 profit surging 36 per cent YoY to Rs 509 crore on 20 per cent YoY jump in sales at Rs 9,015 crore.

Q1 earnings 

In Q1 of the current fiscal, BHEL reported a consolidated net profit of Rs 376.71 crore against a net loss of Rs 455.50 crore in the year-ago period, as revenue rose faster than expenses and the power segment returned to profit.

Revenue from operations rose 40.3 per cent year-on-year to Rs 7,697.72 crore in the first quarter of 2026-27 (Q1FY27)against Rs 5,486.91 crore on a year on year basis. Total income increased 39.8 per cent to Rs 7,911.86 crore.