Bharat Heavy Electricals Limited (BHEL) AI Stock Analysis

• Market Cap: ₹961.75B
• Dividend Yield: 0.18%
• Average Volume (3M): 524.41K
• Price to Earnings (P/E): 172.2
• Beta (1Y): 1.88
• Revenue Growth: 13.30%
• EPS Growth: 137.07%
• Country: IN
• Employees: 42,880
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.10
• Shares Outstanding: 3,482,063,500
• 10 Day Avg. Volume: 234,201
• 30 Day Avg. Volume: 524,406
• PEG Ratio: 1.56
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 2.70
• P/FCF Ratio: 38.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹272.00 ▼(-3.48% Downside)

BHEL's stock score is primarily influenced by its strong financial performance, despite concerns over leverage and cash flow stability. The technical analysis indicates a bullish trend, but overbought conditions could pose risks. The high P/E ratio suggests overvaluation, which significantly impacts the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates BHEL's expanding market presence and effective demand capture, which supports long-term business sustainability.

Improved Profit Margins

Improved profit margins suggest better cost control and operational efficiency, enhancing BHEL's profitability and competitive edge.

Cash Flow Recovery

Recovery in cash flow enhances liquidity and financial flexibility, enabling BHEL to invest in growth opportunities and manage obligations.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain BHEL's financial resources, impacting its ability to invest in growth and maintain financial stability.

Inconsistent Cash Flow

Inconsistent cash flow generation can hinder BHEL's ability to consistently fund operations and strategic initiatives, affecting long-term growth.

Moderate Operating Margins

Moderate operating margins indicate potential inefficiencies in operations, which could limit profitability and competitive positioning.

Bharat Heavy Electricals Limited Business Overview & Revenue Model

Company Description

Bharat Heavy Electricals Limited operates as an engineering and manufacturing company worldwide. The company operates through two segments: Power and Industry. It offers thermal power plants, nuclear power plants, gas-based power plants, hydro power plants, solar power systems, DG power plants, desalination and water treatment plants, systems and services, industrial systems, boilers, boiler auxiliaries, soot blowers, valves, piping systems, seamless steel tubes, steam turbines, turbo generators, industrial sets, castings and forgings, condenser and heat exchangers, pumps, compressors, solar photovoltaics, and automation and control systems. The company also provides transmission systems control, software system solutions, medium voltage vacuum switchgears, on load tap changers, LT switchgear and bus ducts, transformers and reactors, capacitors, bushings, control gears, insulators, electrical machines, rail transportation systems, defense and aerospace products, transportation equipment, energy storage systems and e-mobility, oil field equipment, and fabricated equipment and mechanical packages. It serves customers in power-thermal, transmission, transportation, renewables, water, oil and gas, defense and aerospace, hydro, gas, nuclear and solar PV, energy storage, electric mobility, petrochemicals, and other industries. Bharat Heavy Electricals Limited was incorporated in 1964 and is based in New Delhi, India.

How the Company Makes Money

BHEL generates revenue through multiple streams, primarily by manufacturing and supplying a diverse array of heavy electrical equipment and services. The company earns significant income from the construction and commissioning of power plants, which includes thermal, hydro, and renewable energy projects. Additionally, BHEL engages in the supply of components and systems for power transmission and distribution, contributing to its revenue. The company also undertakes various contracts for engineering services and project management in the energy sector. Key partnerships with government entities and private sector companies, along with participation in joint ventures, further enhance BHEL's earnings potential. The company benefits from ongoing investments in infrastructure and energy projects in India and abroad, which creates a steady demand for its core offerings.

Bharat Heavy Electricals Limited Financial Statement Overview

Summary

BHEL has shown significant improvement in revenue and profitability, supported by an improving balance sheet and cash flow position. However, leverage needs addressing and cash flow generation needs stabilization.

Income Statement

BHEL has demonstrated strong revenue growth, with a significant increase in total revenue from 2024 to 2025. The gross profit margin has improved notably, indicating enhanced cost management. The net profit margin has also increased, showing better profitability. However, EBIT and EBITDA margins are moderate, suggesting room for improvement in operating efficiency.

Balance Sheet

The company's balance sheet shows a stable equity ratio, reflecting a strong capital base. The debt-to-equity ratio is moderate, indicating manageable leverage. Return on equity has improved, suggesting efficient use of equity capital. However, there is a need to monitor the total debt levels as they have increased over recent years.

Cash Flow

BHEL's cash flow statement reveals a strong recovery in operating cash flow and a positive free cash flow in 2025, indicating improved liquidity. The free cash flow to net income ratio is healthy, showing effective cash generation relative to profits. However, the historical inconsistency in cash flow generation poses a potential risk that needs addressing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	273.57B	273.55B	229.21B	221.36B	201.53B	162.96B
Gross Profit	85.03B	85.10B	61.13B	58.36B	53.60B	44.25B
EBITDA	14.72B	17.66B	12.23B	14.97B	11.41B	-27.50B
Net Income	2.90B	5.34B	2.82B	6.37B	4.46B	-26.97B
Balance Sheet
Total Assets	0.00	680.83B	590.05B	593.70B	562.44B	552.40B
Cash, Cash Equivalents and Short-Term Investments	70.57B	70.57B	61.57B	69.21B	71.44B	66.87B
Total Debt	0.00	90.15B	88.56B	54.54B	48.30B	49.51B
Total Liabilities	-247.22B	433.61B	345.67B	325.42B	297.37B	292.68B
Stockholders Equity	247.22B	247.22B	244.39B	243.78B	265.07B	259.84B
Cash Flow
Free Cash Flow	0.00	19.10B	-39.45B	-9.30B	4.91B	3.11B
Operating Cash Flow	0.00	21.92B	-37.13B	-7.42B	6.60B	5.62B
Investing Cash Flow	0.00	-27.31B	13.31B	14.80B	-11.25B	-425.00M
Financing Cash Flow	0.00	-8.57B	26.56B	889.60M	-3.29B	-3.96B

Bharat Heavy Electricals Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 281.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BHEL, the sentiment is Neutral. The current price of 281.8 is above the 20-day moving average (MA) of 280.77, above the 50-day MA of 266.82, and above the 200-day MA of 241.25, indicating a neutral trend. The MACD of 1.77 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:BHEL.

Bharat Heavy Electricals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUMMINSIND	72 Outperform	₹1.22T	52.80	―	1.17%	20.23%	18.69%
ABB	67 Neutral	₹1.10T	62.18	―	0.84%	12.35%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHEL	58 Neutral	₹961.75B	172.19	―	0.18%	13.30%	137.07%
ISGEC	58 Neutral	₹59.99B	32.01	―	0.61%	-4.14%	-35.66%
THERMAX	58 Neutral	₹342.01B	54.46	―	0.49%	3.37%	-19.95%
SIEMENS	57 Neutral	₹1.11T	52.63	―	0.39%	-21.92%	-22.52%

Bharat Heavy Electricals Limited Corporate Events

BHEL to Engage with Investors in Upcoming Group Meeting

Bharat Heavy Electricals Limited (BHEL) has announced its participation in an Investor Group Meeting scheduled for December 5, 2025, at its corporate office in New Delhi. This meeting, conducted physically, is part of BHEL’s ongoing engagement with investors, although no presentation will be made during the session. Such meetings are crucial for maintaining transparency and communication with stakeholders, potentially impacting investor relations and market perception.

BHEL Announces Senior Management Change

Bharat Heavy Electricals Limited has announced a change in its senior management, with the superannuation of Shri K Bharaneedhar Raja, the Executive Director of HPEP, Hyderabad, effective November 24, 2025. This change in leadership is part of the company’s ongoing management transitions, which may impact its operational strategies and stakeholder relations.

BHEL Seeks Shareholder Approval for Strategic Amendment

Bharat Heavy Electricals Limited has announced a Postal Ballot Notice seeking shareholder approval for an amendment to its Articles of Association. The proposed amendment aims to grant the company’s directors the authority to establish joint ventures and subsidiaries both in India and abroad, as well as to divest shareholding in these entities, in compliance with government guidelines. This strategic move could enhance BHEL’s operational flexibility and expand its market reach, potentially impacting its industry positioning and stakeholder interests.

BHEL Engages in Legal Battle Over Arbitration Award

Bharat Heavy Electricals Limited (BHEL) has disclosed ongoing litigation involving two petitions filed against an arbitration award. These petitions, filed in the Commercial Court of Bengaluru, have significant financial implications, with claims amounting to INR 200.76 crores plus interest. This development could impact BHEL’s financial standing and operational focus, highlighting the company’s active engagement in legal proceedings to protect its interests.