Bharat Heavy Electricals Ltd
Ticker: BHEL
Risky
48/100
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Investing Reference
Price
265.49
Market Cap
92445.30
Debt/Equity
0.3646
ROE %
2.172
PB
3.7394
Promoter %
63.171
Pledge %
0.000
1Y Rev Growth %
17.797
5Y Rev Growth %
5.530
NP Margin %
1.850
NP Margin 5Y Avg %
-1.487
Trading Reference
1M Return %
9.468
6M Return %
18.237
1Y Return %
11.084
% Away 52W High
2.490
% Away 52W Low
50.847
Daily Volume
23280006
Investment Verdict
Risky
Score 50/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Momentum
Score 75/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Bharat Heavy Electricals Ltd shows potential for growth amid challenges in the power sector.
✅ Positives
- Strong order book supporting future revenue
- Government focus on renewable energy projects
- Diversified product portfolio enhances market reach
⚠️ Negatives
- High competition in the power equipment sector
- Dependence on government contracts
- Recent supply chain disruptions affecting operations
Verdict
Cautiously optimistic about future performance.
Recommendation: Consider buying on dips.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 30/10/2025
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Business Overview
Bharat Heavy Electricals Ltd (BHEL) is a leading engineering and manufacturing company in India, specializing in power generation and transmission equipment. With a strong legacy, BHEL caters to various sectors, including power, transportation, and renewable energy. Its commitment to innovation and sustainability makes it a key player in India’s industrial landscape. BHEL's robust portfolio and extensive experience position it as a trusted partner for both public and private enterprises.
- Established leader in power equipment manufacturing
- Diverse product range across multiple sectors
- Focus on renewable energy and sustainability
- Strong government partnerships and projects
- Proven track record of quality and reliability
Investment Thesis
Bharat Heavy Electricals Ltd (BHEL) presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions BHEL for robust future performance, making it a worthy addition to any portfolio.
- Strong backing from the Government of India ensures stability and credibility.
- Expanding digital services segment offers substantial growth potential.
- Valuation metrics indicate BHEL is undervalued compared to industry peers.
- Focus on renewable energy aligns with national sustainability goals.
- Proven track record in engineering excellence enhances investor confidence.
Opportunity vs Risk
Opportunities
- Strong government infrastructure spending
- Growing renewable energy sector
- Expansion into electric mobility
- Diversification of product offerings
Risks ⚠️
- High competition in power sector
- Dependence on government contracts
- Volatility in raw material prices
- Economic slowdown impacts demand
Peer Perspective
Bharat Heavy Electricals Ltd trades at a discount to peers like L&T and Siemens, primarily due to margin volatility. A stable margin improvement could trigger a much-needed rerating in its valuation.
Future Outlook
Bharat Heavy Electricals Ltd is well-positioned for growth, driven by increasing demand in the energy sector; however, successful execution of projects and stringent cost control will be crucial to maximize shareholder value.
📊 Stock Investment Checklist (100 Points)
Bharat Heavy Electricals Ltd • Updated: 2025-09-17 01:35:05
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10BusinessHighThe sector is evolving with a focus on renewable energy, but BHEL faces stiff competition.
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10GrowthHighRevenue growth has been inconsistent, impacted by project delays.
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8ProfitabilityHighROE and ROCE are below industry averages, indicating profitability challenges.
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9ValuationHighValuation metrics are not favorable compared to peers, indicating overvaluation.
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7BalanceHighModerate debt levels but liquidity concerns persist.
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6GovernanceGoodPromoter holding is decent, but there are concerns about transparency.
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5DriversGoodGrowth catalysts are limited, with execution risks high.
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1TechnicalsLowTechnical indicators show weak momentum and low liquidity.
Final Score & Verdict
Score 48 / 100
• Risky
BHEL is facing significant challenges in growth and profitability, making it a risky investment at this time.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100