Bharat Heavy Electricals Limited (BHEL) AI Stock Analysis

• Market Cap: ₹804.01B
• Dividend Yield: 0.22%
• Average Volume (3M): 508.97K
• Price to Earnings (P/E): 277.4
• Beta (1Y): 1.99
• Revenue Growth: 16.28%
• EPS Growth: N/A
• Country: IN
• Employees: 42,880
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -1.30
• Shares Outstanding: 3,482,063,500
• 10 Day Avg. Volume: 424,271
• 30 Day Avg. Volume: 508,974
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹235.40
• Price Target Upside: 1.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: ₹238.00 ▲(3.07% Upside)

BHEL's financial performance shows strong revenue and profitability growth, but concerns about leverage and cash flow stability persist. Technical indicators suggest a neutral trend with bearish momentum. The stock appears overvalued with a high P/E ratio and low dividend yield.

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 makes money through multiple revenue streams, primarily from the sale of its engineering products and services. A significant portion of its revenue comes from contracts and projects in the power sector, where it supplies and installs power plant equipment. Additionally, BHEL generates income through its industrial systems and products, which cater to various segments such as transmission, transportation, and renewable energy. The company also earns from after-sales services, including maintenance and upgrades of installed equipment. Strategic partnerships, both domestic and international, also play a role in expanding its market reach and enhancing revenue opportunities.

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, the company needs to address its leverage and stabilize cash flow generation to maintain a strong financial standing.

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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	283.39B	283.39B	229.21B	201.53B	221.36B	162.96B
Gross Profit	64.73B	94.94B	61.13B	53.60B	58.36B	44.25B
EBITDA	15.75B	12.42B	11.34B	10.26B	13.72B	-28.42B
Net Income	5.34B	5.34B	2.82B	4.46B	4.77B	-26.97B
Balance Sheet
Total Assets	680.83B	680.83B	590.05B	562.44B	593.70B	552.40B
Cash, Cash Equivalents and Short-Term Investments	76.12B	76.12B	61.57B	71.44B	69.21B	66.87B
Total Debt	90.15B	90.15B	88.56B	48.30B	54.54B	49.51B
Total Liabilities	433.61B	433.61B	345.67B	297.37B	325.42B	292.68B
Stockholders Equity	247.22B	247.22B	244.39B	265.07B	268.28B	259.84B
Cash Flow
Free Cash Flow	0.00	19.10B	-39.45B	4.91B	-9.30B	3.11B
Operating Cash Flow	0.00	21.92B	-37.13B	6.60B	-7.42B	5.62B
Investing Cash Flow	0.00	-27.31B	13.31B	-11.25B	14.80B	-425.00M
Financing Cash Flow	0.00	-8.57B	26.56B	-3.29B	889.60M	-3.96B

Bharat Heavy Electricals Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 230.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 230.9 is above the 20-day moving average (MA) of 226.21, above the 50-day MA of 229.31, and above the 200-day MA of 227.20, indicating a bullish trend. The MACD of 2.97 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 61.52 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	₹1.09T	51.11	26.45%	1.30%	20.71%	17.04%
SIEMENS	70 Outperform	₹1.10T	45.02	17.69%	0.39%	-13.58%	-0.28%
THERMAX	65 Neutral	₹380.95B	53.67	12.85%	0.44%	8.14%	-4.46%
ABB	61 Neutral	₹1.10T	61.11	26.45%	0.84%	10.27%	11.90%
ISGEC	60 Neutral	₹65.95B	27.95	9.10%	0.56%	-2.31%	-8.69%
BHEL	58 Neutral	₹804.01B	277.42	―	0.22%	16.28%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Bharat Heavy Electricals Limited Corporate Events

BHEL Partners with Horizon Fuel Cell Technologies for Hydrogen Fuel Cell Rolling Stock

BHEL has signed a long-term exclusive Memorandum of Understanding (MOU) with Horizon Fuel Cell Technologies Pte Ltd, a Singapore-based company, to collaborate on hydrogen fuel cell-based rolling stock for the domestic market. This strategic partnership aims to create and enter a new market segment, enhancing BHEL’s industry positioning and potentially offering significant benefits to stakeholders by expanding its technological capabilities and market reach.

BHEL Announces 61st AGM and E-voting Details

Bharat Heavy Electricals Limited announced the publication of an advertisement regarding its 61st Annual General Meeting (AGM) and E-voting information, in compliance with SEBI regulations and the Ministry of Corporate Affairs guidelines. This announcement is part of BHEL’s ongoing efforts to maintain transparency and engage with its stakeholders effectively, reinforcing its commitment to corporate governance and regulatory compliance.