Business
Following strong Q3 results, experts have given a high target for Maharatna PSU BHEL. Two foreign brokerage houses have presented separate reports.
On Wednesday, January 29, BHEL shares saw a surge of over 6%, closing at ₹199.92.
Morgan Stanley maintains an overweight rating on BHEL with a target of ₹352, approximately 88% higher than the current price.
According to Morgan Stanley, BHEL's standalone revenue grew by 32% YoY, exceeding estimates. EBITDA reached ₹3 billion, and power-industry segment revenue increased by 32-33%.
CLSA advises caution on BHEL, downgrading its rating and lowering the target price from ₹205 to ₹166.
CLSA cites L&T's entry into the thermal power equipment segment as challenging BHEL's market dominance. Weak margins led to a 3-8% cut in FY25-27 EPS estimates.
BHEL reported a consolidated net profit of ₹134.7 crore in Q3, up 123% from ₹60.3 crore in the same quarter last year.
BHEL's revenue increased from ₹5,599.63 crore to ₹7,385 crore in Q3, impacting share performance. EBITDA rose from ₹216.5 crore to ₹304.2 crore.
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