Bharat Heavy Electricals Ltd. (BHEL) was listed on the BSE on November 12, 1991. In the last five year, its stock has given a massive return of more than 810%. Will BHEL continue to provide such impressive returns in 2025 and upcoming years as well? In this article, we will explore the BHEL share price target 2025 to 2050.
About BHEL
Bharat Heavy Electricals Limited (BHEL) is an Indian public-sector company that manufactures electrical equipment such as turbines, generators, and transformers. The company was established in 1964 to address the country’s growing power demand. BHEL develops, manufactures, and distributes a wide range of products and services for the power, industry, transportation, and defence sectors. It is one of the leading engineering firms in India and plays a vital part in creating the country’s infrastructure by supplying equipment and services for electricity generation and distribution.
BHEL Business Model
- Power Plant Equipment Manufacturing: BHEL manufactures turbines, boilers, and generators for power plants in India and around the world.
- Turnkey Project Execution: BHEL provides entire power plant solutions, including design, engineering, construction, and commissioning.
- Maintenance, Repair, and After-Sales Services: Bhel offers maintenance, repair, and after-sales services to power plants and other industrial projects.
- Defence Equipment: BHEL manufactures and distributes radar systems, naval equipment, and other high-tech products to the Indian defence sector.
- Renewable Energy Solutions: BHEL is investing in the renewable energy sector, providing equipment and services for solar, wind, and hydropower plants.
BHEL Fundamental Analysis
| Stock Name | BHEL Ltd. |
|---|---|
| NSE Symbol | BHEL |
| Market Cap | ₹ 87,173 Cr. |
| 52W High | ₹ 335 |
| 52W Low | ₹ 176 |
| Stock P/E | 163 |
| Book Value | ₹ 71.0 |
| Dividend Yield | 0.10% |
| ROCE | 4.46% |
| ROE | 2.17 % |
| Face Value | ₹ 2.00 |
| Industry PE | 44.9 |
| Price to book value | 3.53 |
| Debt to equity | 0.36 |
| PEG Ratio | 8.71 |
| Quick ratio | 1.17 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 63.17% | 63.17% | 63.17% |
| FIIs | 8.58% | 8.76% | 7.19% |
| DIIs | 15.50% | 15.95% | 16.34% |
| Public | 12.76% | 12.14% | 13.29% |
| No. of Shareholders | 10,16,936 | 14,99,202 | 21,20,567 |
Key Factors Driving BHEL Future Growth
- Diversification into High-Growth Sectors: BHEL is actively growing in areas like water treatment, rail transportation, defense, and aerospace. This is done to become less dependent on the traditional power sector and find new ways to make money.
- Pay attention to renewable energy: BHEL is putting money into solar and wind power projects to keep up with global trends in sustainability and India’s goals for renewable energy.
- Focus on Green Hydrogen Projects: BHEL has signed an MoU with Greenstat Hydrogen India to look into green hydrogen project opportunities. This will help the National Hydrogen Mission and increase its involvement in the hydrogen value chain.
- Investments in new technologies and research and development: To make things run more smoothly and quickly, BHEL is spending money on digital transformation and advanced manufacturing technologies. For example, they are putting in place an Integrated Project Management System and digitizing site data.
- Strengthening Core Power Equipment Business: BHEL is the biggest company in India that makes power equipment. It’s responsible for over half of the country’s installed capacity of conventional power projects, which means it always has orders and money coming in.
- Growth of the Order Book: BHEL’s order book has grown a lot, reaching Rs 1.60 lakh crore on September 30, 2024. This means that the company will be able to predict strong revenue growth over the next few years.
- International Partnerships and Global Growth: BHEL is growing its international presence through strategic partnerships and the purchase of global projects. For example, the company is working with General Electric Technology GmbH on gas turbines and the Maitree Super Thermal Power Project in Bangladesh.
- Commitment to Sustainability: BHEL wants to lower its carbon intensity by 30% and raise its renewable energy capacity to 12,000 MW by 2025. These goals show that the company is committed to being environmentally responsible.
- Strategies for Cost Optimization: To keep up with rising costs and stay competitive, BHEL has set up a Cost Optimization Cell that works on design reviews, system/civil design optimization, and smart energy management.
- Pay attention to service verticals. BHEL knows how important service verticals are and wants to grow its business in this area by offering more after-sales services to make customers happier and make more money.
Pros of Investing in BHEL
- Strong Order Book: As of September 2024, BHEL’s order book has grown by 44.1% year-over-year, including significant contracts like a ₹13,300 crore order for the Koderma thermal power station and an ₹11,000 crore deal from Adani Power.
- Increased Institutional Support: In the December 2024 quarter, domestic institutional investors have raised their holdings in BHEL to 15.49% from 14.69% in September 2024, indicating growing confidence in the company’s future.
- Strategic Shift Towards Renewable Energy: BHEL is focusing on renewable energy projects to take advantage of India’s ₹40 trillion energy infrastructure investment over the next decade.
- Low Debt Levels: BHEL debt-to-equity ratio is 0.36, which indicates that the company is less dependent on debt, which reduces its financial risk.
- Increase in DIIs Holding: DIIs holding increased from 15.49% in December 2024 to 16.34% in March 2025, showing a positive outlook towards BHEL by the DIIs.
Cons of Investing in BHEL
- Declining Foreign Institutional Investment: Foreign Institutional Investors (FIIs) reduced their holdings in BHEL from 9.49% in September 2024 to 7.98% in December 2024, suggesting decreased confidence among foreign investors.
- Dependence on the Power Sector: A significant portion of BHEL’s revenue comes from the power sector. Challenges in this sector, like project delays and financial issues among state power utilities, can negatively impact the company’s performance.
- Decreasing Sales – BHEL sales have been decreasing at a CAGR of -1% over the last ten years.
- Decreasing Profits – BHEL profits have been decreasing at a CAGR of -9%. over the last ten Years.
- Low Return on Equity (ROE): BHEL 5-year average ROE is -0.64%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- Low Return on Equity (ROCE): BHEL 5-year average ROCE is 1.06%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- Overvaluation Concern: BHEL stock is trading at a PE ratio of 163 and a (P/B) ratio of 3.53, which shows that its stock is significantly overvalued compared to its earnings and assets.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 7.19% in March 2025 from 7.98% in December 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
BHEL Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Equity Capital | 696 | 696 | 696 |
| Reserves | 23,682 | 23,742 | 24,026 |
| Borrowings | 5,454 | 8,856 | 9,015 |
| Other Liabilities | 27,832 | 26,493 | 34,346 |
| Total Liabilities | 57,664 | 59,788 | 68,083 |
| Fixed Assets | 2,476 | 2,574 | 2,981 |
| CWIP | 354 | 308 | 162 |
| Investments | 235 | 256 | 276 |
| Other Assets | 54,599 | 56,650 | 64,665 |
| Total Assets | 57,664 | 59,788 | 68,083 |
By the end of 2025, the BHEL share price is expected to be around ₹320 in normal conditions. In a bear market, it might be ₹300, and in a bull market, it may go up to ₹400.
| BHEL Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 300 |
| 2nd Target | 320 |
| 3rd Target | 400 |
In 2026, the BHEL share price is expected to be around ₹400 in a normal situation. In a bear market, it might be ₹350, and in a bull market, it may cross ₹500.
| BHEL Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 350 |
| 2nd Target | 400 |
| 3rd Target | 500 |
According to our analysis, the BHEL share price is expected to be around ₹500 in 2027. In a bear market, it might be ₹450, and in a bull market, it may cross ₹650.
| BHEL Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 450 |
| 2nd Target | 500 |
| 3rd Target | 650 |
According to our analysis, the BHEL share price may trade near ₹600 by 2028; bearish conditions could pull it down to ₹550, while a strong bull run might lift it to ₹850.
| BHEL Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 550 |
| 2nd Target | 600 |
| 3rd Target | 850 |
In a normal situation, the BHEL share price is projected to be approximately ₹800 in 2029. In a bear market, the value may be as low as ₹650, while in a bull market, it may rise to ₹1100.
| BHEL Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 650 |
| 2nd Target | 800 |
| 3rd Target | 1100 |
In a normal situation, the BHEL share price is projected to be approximately ₹1000 in 2030. In a bear market, the value may be as low as ₹800, while in a bull market, it may rise to ₹1450.
| BHEL Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 800 |
| 2nd Target | 1000 |
| 3rd Target | 1450 |
By 2035, the BHEL share price is projected to be around ₹2000 under normal conditions. In adverse markets, the price could fall to ₹1600, while favorable conditions might push it up to ₹4350.
| BHEL Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 1600 |
| 2nd Target | 2000 |
| 3rd Target | 4350 |
Under normal conditions, the BHELl share price might hit ₹7000 by 2040. A bearish trend could lower it to ₹3200, whereas a bullish surge could raise it to ₹13,000.
| BHEL Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 3200 |
| 2nd Target | 7000 |
| 3rd Target | 13,000 |
In 2050, the BHEL share price is expected to be around ₹20,000 in a normal situation. In a bear market, it might be ₹12,800, and in a bull market, it may go up to ₹78,500.
| BHEL Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 12,800 |
| 2nd Target | 20,000 |
| 3rd Target | 78,500 |
| Years | Target Price |
|---|---|
| BHEL Share Price Target 2025 | ₹300 to ₹400 |
| BHEL Share Price Target 2026 | ₹350 to ₹500 |
| BHEL Share Price Target 2027 | ₹450 to ₹650 |
| BHEL Share Price Target 2028 | ₹550 to ₹850 |
| BHEL Share Price Target 2029 | ₹650 to ₹1100 |
| BHEL Share Price Target 2030 | ₹800 to ₹1450 |
| BHEL Share Price Target 2035 | ₹1600 to ₹4350 |
| BHEL Share Price Target 2040 | ₹3200 to ₹13,000 |
| BHEL Share Price Target 2050 | ₹12,800 to ₹78,500 |
Conclusion
BHEL has experienced significant growth in recent years, thanks to a strong order book, increased government support, and an expansion into renewable energy. However, challenges like dependence on the power sector, declining foreign investments, and low return ratios remain concerns. While BHEL’s future looks promising with India’s infrastructure development plans and technological advancements, investors should carefully consider both the opportunities and risks before making investment decisions. For latest information, visit BHEL official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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