BHEL shares rise as brokerage sets target of ₹453
Geojit Financial Services upgraded the Maharatna PSU stock to Buy following a doubling of net profit in the second quarter.
Bharat Heavy Electricals Limited (BHEL) saw its shares rise 2.5 per cent on Wednesday to reach an intraday high of ₹404.70 on the BSE, according to a report by Mint. The stock has gained 51 per cent over the last year, though it has declined 5 per cent in the past month.
The company reported a 120.1 per cent year-on-year increase in standalone net profit to ₹810 crore for the second quarter of FY27. This follows a profit of ₹368 crore in the same period last year. Revenue from operations grew 23.8 per cent to ₹9,300 crore, up from ₹7,511 crore in the previous year.
Operating performance also improved, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising 76.6 per cent to ₹1,026 crore. The EBITDA margin expanded to 11 per cent from 7.7 per cent a year earlier.
Domestic brokerage Geojit Financial Services upgraded its rating on BHEL to Buy and set a target price of ₹453. The brokerage noted that the company's order book of ₹2.58 lakh crore provides revenue visibility and expects execution-led growth to drive earnings.
The board of BHEL has approved a capital investment of approximately ₹500 crore to build more manufacturing facilities for thermal and nuclear sets at its Haridwar plant. The board also approved merging its Mumbai Electrical Machines Repair Plant and Bengaluru Electronics Division into one unit from November 1, 2026.