BHEL share price target: Already up 50% in 1 year, should you still buy the Maharatna PSU stock? Expert views
BHEL shares have surged over the past year but recently weakened. Strong Q2 results, a large order book and planned ₹500 crore manufacturing investment underpin optimism. Geojit sees further upside, setting a ₹453 target.
PSU Stock BHEL: BHEL has remained on investors' radar amid the broader interest in PSU stocks, backed by its strong presence in the power and industrial sectors. The company's large order book, improving execution and growing opportunities in thermal and nuclear power equipment have also kept the stock in focus. However, after a sharp rally, recent weakness has raised questions about whether the Maharatna PSU stock can sustain its momentum and deliver further gains.
BHEL shares have gained 51% in one year and 461% over five years, although they have declined 5% in the past month and 2.5% in three months. The stock rose 2.5% on Wednesday to hit an intraday high of ₹404.70 on the BSE, around 13% below its 52-week high of ₹463.60, touched on October 14, 2026.Its latest Q2 results, however, offered a strong earnings show, with net profit more than doubling. Should investors consider buying BHEL shares at current levels?BHEL Q2 results: Profit more than doubles, revenue rises 24%BHEL reported a 120.1% year-on-year (YoY) jump in standalone net profit to ₹810 crore in the second quarter of FY27, compared with ₹368 crore in the corresponding quarter last year.Revenue from operations increased 23.8% YoY to ₹9,300 crore from ₹7,511 crore, reflecting stronger topline growth.
Operating performance also improved significantly, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising 76.6% to ₹1,026 crore from ₹581 crore in the year-ago period.EBITDA margin expanded to 11% from 7.7% a year earlier, indicating improved operating profitability. However, other expenses rose to ₹721 crore from ₹391 crore in the previous quarter.Separately, BHEL's board approved a capital investment proposal of around ₹500 crore to set up additional manufacturing facilities for thermal and nuclear sets at its Heavy Electrical Equipment Plant in Haridwar.
The board also approved the merger of its Electrical Machines Repair Plant in Mumbai and Electronics Division in Bengaluru into a single unit, with the latter designated as the merged unit from November 1, 2026.BHEL Dividend HistoryBharat Heavy Electricals Limited (BHEL) has distributed over 40 dividends since 2001. It announced final dividend of ₹0.50 per share in August 2025, and a ₹0.25 per share in August 2024.
Looking back at the historical milestones that define its layout, the company's absolute highest key payouts occurred during its peak corporate era, yielding an all-time record final dividend of ₹17.90 per share in August 2011 alongside an interim dividend of ₹13.25 per share in March 2011.BHEL share price target: Should you buy, sell or hold?Domestic brokerage house Geojit Financial Services has upgraded its rating on BHEL to Buy and revised its target price to ₹453, valuing the stock at 2.9 times its estimated FY28 price-to-sales ratio.
The target implies further upside from the stock's recent trading levels.The brokerage is positive on BHEL's strong order book, which stood at ₹2.58 lakh crore and provides visibility for future revenue. It expects execution-led growth, supported by improving performance across the power and industrial businesses, to drive a significant improvement in earnings.Geojit also expects operating leverage and better fixed-cost absorption to support margin expansion and improve return ratios.
It projected revenue and earnings per share to grow at CAGRs of 27% and 79%, respectively, between FY26 and FY28. Return on equity is expected to improve from 6.2% in FY26 to 15.6% in FY28.The brokerage said, “BHEL’s strong order book of ₹2.58 lakh crore provides healthy revenue visibility” and is expected to support robust execution-led growth. BHEL's recent financial performance and large order book provide reasons for optimism, while Geojit's revised target suggests that the brokerage sees further upside despite the stock's sharp gains over the past year.
However, investors should also assess execution risks and whether the company can deliver the projected growth and margin improvement. The stock's past returns alone should not be the basis for an investment decision.
