&w=3840&q=100)
BHEL bags new 'Buy' from UBS with 40% upside; check target, outlook here
Analysts at UBS assigned a target price of ₹340 per share for the stocks, implying an upside of over 40 per cent from the previous (Monday) close.
The company's thermal orders are set to reaccelerate with a potential for bottom-line acceleration, UBS said in a report dated August 4. Further, the government's 80 Gigawatts (Gw) target in new thermal capacity by the financial year 2032 (FY32) implies 35 Gw of orders in FY25-28. "With an 85 per cent market share in FY17-25, we believe BHEL is best positioned."
The heavy electrical equipment maker's competitive positioning in thermal power remains robust, reflecting its leadership in the past three decades, UBS said. The brokerage expects an order inflow of ₹2.1 trillion in FY25-28, driving a 1.6 times growth in the order book by FY28, it added.
The company saw early benefits of execution pickup, UBS said, which drove Ebitda breakeven from FY21 to FY25. "With the increase in capacity utilisation and execution over FY25-28, we expect BHEL to improve gross and Ebitda margins, led by cyclically better product margins and operating leverage."
UBS believe BHEL is well positioned to benefit from the uptick in new thermal projects, which is expected to drive robust revenue and Ebitda CAGRs of 33 per cent and 84 per cent, respectively, over FY25-28. "In our view, the consensus is underestimating BHEL's earnings potential, leaving room for possible earnings upgrades."
"While we think consensus prices in rising orders, it underappreciates bottom-line translation," UBS added. Key risks to UBS's views include delays in execution ramp-up and fewer new order wins.
BHEL share price history
The company rose as much as 2.6 per cent during the day to ₹247.9 per share. The stock pared gains to trade 2.2 per cent higher at ₹247 apiece, compared to a 0.2 per cent advance in Nifty 50 as of 9:30 AM.
Shares of the company rose for the second day and currently trade at 2.3 times the average 30-day trading volume, according to Bloomberg. The counter has risen 8 per cent this year, compared to a 4.3 per cent advance in the benchmark Nifty 50. BHEL has a total market capitalisation of ₹84,057.01 crore.
About BHEL
BHEL is among the leading power plant equipment manufacturers in the country. The company specialises in the design, engineering, manufacturing, installation, testing, commissioning, and servicing of a diverse array of products and services.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
18 minutes ago
- The Hindu
The Hindu's coffee table book on Tamil Nadu's temple architecture released
A coffee table book titled 'Evolution of temple architecture in Tamil Nadu' and authored by Vrinda Ramanan and J. Ramanan, was released by Shiv Das Meena, the Chairperson of Tamil Nadu Real Estate Regulatory Authority (TNRERA) and Nirmala Lakshman, the Chairperson of The Hindu Group, on Tuesday (August 5, 2025). The book by The Hindu Group publications is a comprehensive historical study of the evolution of temples in Tamil Nadu, from rock-cut sanctuaries to structural temples. This special coffee table book released during the inaugural of The Hindu Tamil Nadu Real Estate Summit 2025 in Chennai has 250 photographs, 75 sketches describing the evolution of the grand vimanas and pillars and 358 pages with richly layered historical narratives weaving history, architecture, art and devotion. The book is a visual and narrative journey through South India's temple heritage. It traces the evolution from rock-cut caves to towering Chola temples, while also highlighting the far-reaching influence of Indian kings. The architectural legacy of the Mauryas, Chalukyas, Pallavas, Pandyas and Cholas extends beyond India's shores — to the grand temples of Indonesia, Cambodia, Borobudur and ancient Vietnam. N. Ram, Director of The Hindu Group, L.V. Navaneeth, CEO of The Hindu Group and Sridhar Aranala, Vice-President (Sales and Distribution) of The Hindu were also present. The book is available for sale in The Hindu Group's online bookstore. The cover price of this coffee-table book is ₹3,999. A special launch offer at ₹2,999 may be availed for a limited period of one week from August 5 by visiting The Hindu Group's online bookstore at
The Hindu
18 minutes ago
- The Hindu
Tariff war will worsen economy more than COVID-19 pandemic: Kerala Finance Minister K.N. Balagopal
Kerala Finance Minister K.N. Balagopal has warned that Kerala needs to prepare well to tackle the 'tariff war' looming over the economy, propelled by the recent tariff policies of the United States and other global players. Mr. Balagopal was speaking after inaugurating a two-day seminar 'Post-COVID Development Challenges and Response: Kerala through the lens of State budgets' organized by the Gulati Institute of Finance and Taxation (GIFT) in Thiruvananthapuram on Tuesday (August 5, 2025). 'It has to be examined how these policies impact the Indian economy and specifically Kerala, whose exports cover multiple sectors,' he said. The Finance Minister suggested that the academic community organise a roundtable discussion on the implications of these policies for India and Kerala to generate clarity on what lies ahead for the economy. 'Dangerous situation' ahead Mr. Balagopal said he perceived a 'dangerous situation' ahead, referring to recent demands that 'India should reduce its tariffs.' 'The tariff war looming over us will worsen our economy further,' he said, adding that the influx of imports at low tariffs would create an economic situation 'much worse than the COVID-19 pandemic.' M.A. Oommen, eminent economist and Distinguished Professor at GIFT who chaired the session, underscored the need for Kerala to focus on the protection and conservation of its rich biodiversity, tackle the spectre of corruption and nurture the public sector enterprises. Mr. Oommen lauded Mr. Balagopal for an 'excellent linear programming exercise' in steering Kerala's economy through a period of fiscal stress. Pointing out that major challenges lay ahead for the economy in the years ahead, he urged Left democratic forces to rise up to the occasion. C. Balagopal, chairman, Kerala State Industrial Development Corporation (KSIDC), said current policies and public finance constraints should be understood within the framework of whether government policies are promoting the growth of value addition in sectors, and what needs to be done to generate more value addition in them. 'How the sectoral distribution of the gross state domestic product (GSDP) and the State meeting total factor productivity (TFP) are pertinent questions,' he said. Additional Chief Secretary (Finance) K.R. Jyothilal, GIFT director K.J. Joseph and GIFT registrar Saraf A. also spoke. Senior economists and planning experts are attending the seminar which focusses on development issues that Kerala has been facing since the pandemic.
&w=3840&q=100)
Business Standard
18 minutes ago
- Business Standard
Supported by Brics, like-minded allies: Russia amid Trump's tariff threats
Russia on Monday (local time) said the country is supported by a vast number of partners, like-minded states, and allies amid tariff wars or sanction threats by US President Donald Trump. Foreign Ministry Spokeswoman Maria Zakharova made these remarks in response to a media question regarding the tightening of tariffs by the Trump administration towards the countries of the Global South. Zakharova noted, "Sanctions and restrictions have, unfortunately, become a defining feature of the current historical period, impacting countries across the globe." She further added that Washington is unable to accept the erosion of its dominance in an emerging multipolar international order and is continuing to pursue a neocolonial agenda, employing politically motivated economic pressure against those who choose an independent course on the international stage. Remarks from Russia's foreign ministry come days after Trump announced sweeping new tariff rates on dozens of countries, including India. On August 1, Trump imposed a 25 per cent tariff on Indian goods, adding that the latter would also have to pay a penalty for its continued trade with Russia amid Moscow's ongoing war with Kyiv, which has now entered the fourth year. Zakharova also added, "Such actions by the United States represent a direct infringement on the sovereignty of other nations and an attempt to interfere in their internal affairs. Beyond these concerns, this policy risks slowing global economic growth, disrupting supply chains, and deepening the fragmentation of the international economic system." Russia exits the INF Treaty with the US Russia also announced its exit from the 1987 Intermediate-Range Nuclear Forces (INF) Treaty with America. Russia's foreign ministry stated that it believes that the conditions required to maintain the INF Treaty have "disappeared." The exit from the treaty came days after Trump ordered the deployment of two nuclear submarines to "be positioned in the appropriate regions" near Russia. Trump's order to deploy the nuclear submarines came after former Russian president Dmitry Medvedev accused Trump of playing a "game of ultimatums" with Moscow. US-India trade ties strained Amid the ongoing global tensions, the US has also accused India of its continuous trade with Russia. In a post on Truth Social, Trump said, "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST." In a separate post, he doubled down on both India and Russia and said, "I don't care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India; their Tariffs are too high, among the highest in the world." India counters Trump's claims The Ministry of External Affairs (MEA) criticised Trump's "dead economy" remark, reminding the US that when India started importing oil from Russia at the outbreak of the conflict, Washington encouraged such trade. Calling Trump's statements "unjustified and unreasonable', India defended its oil imports from Russia, saying they were driven by national necessity and were far smaller in scale compared to the West's energy purchases.
