Bharat Heavy Electricals Limited (BHEL) Share Price Target 2026 to 2030

Bharat Heavy Electricals Limited (BHEL) is India’s largest power generation equipment manufacturer and a Maharatna public sector enterprise under the Ministry of Heavy Industries, Government of India. Headquartered in New Delhi, BHEL designs and manufactures equipment for thermal, hydro, nuclear, and renewable energy projects, along with offerings in transmission, transportation, oil & gas, and defense sectors. As of January 2026, BHEL is experiencing a cyclical revival—driven by India’s push for energy security, thermal plant revivals, and green hydrogen infrastructure—but remains constrained by low profitability, legacy inefficiencies, and high valuation multiples. This article provides a data-driven outlook on the BHEL share price target 2026–2030.

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Share Price Target

Bharat Heavy Electricals Limited (BHEL): Company Overview

Founded: 1964
Chairman & Managing Director: Shri Nalin Shinghal
NSE Symbol: BHEL
Core Segments:
Power (75%) – boilers, turbines, generators
Industry & Transportation (15%) – railways, EV components
Renewable Energy & Defense (10%) – solar, hydrogen, naval systems
Market Position: India’s only integrated power equipment manufacturer; key supplier to NTPC, NHPC, and Indian Railways

BHEL plays a strategic role in India’s “Atmanirbhar Bharat” (self-reliance) initiative, particularly in thermal power rehabilitation and green hydrogen pilot projects.

Bharat Heavy Electricals Limited (BHEL): Key Financial Snapshot

Metric	Value
Current Share Price	₹249
Market Capitalization	₹86,860.07 Cr
No. of Shares Outstanding	348.21 Cr
P/E Ratio (TTM)	108.67
P/B Ratio	3.45
EPS (TTM)	₹2.30
Book Value (TTM)	₹72.28
ROE	2.05%
ROCE	4.83%
Dividend Yield	0.20%
Face Value	₹2
Cash	₹7,612.41 Cr
Debt	₹8,795 Cr
Promoter Holding	63.17%
Sales Growth (YoY)	18.61%
Profit Growth (YoY)	97.38%

Note on Profit Growth: The 97% YoY profit jump stems from a low base (FY2024 net profit: ₹142 Cr → FY2025: ₹280 Cr). Despite growth, ROE remains critically low at 2.05%, indicating poor capital efficiency.

BHEL Share Price Target Forecast (2026–2030)

Year	Target Price Range (₹)
2026	₹260 – ₹290
2027	₹270 – ₹310
2028	₹280 – ₹340
2029	₹290 – ₹370
2030	₹300 – ₹400

BHEL Share Price Target 2026

Year	Share Price Target 1	Share Price Target 2
2026	₹260	₹290

BHEL reported 97.38% YoY profit growth in FY2025, driven by order inflows from thermal power rehabilitation and railway electrification. However, its P/E of 108.67x and ROE of just 2.05% reflect extreme overvaluation relative to returns. The 2026 target range assumes continued order momentum but no significant margin improvement.

BHEL Share Price Target 2027

Year	Share Price Target 1	Share Price Target 2
2027	₹270	₹310

If BHEL sustains 15–20% revenue growth and benefits from green hydrogen capex, EPS could reach ₹2.50–₹2.70 by FY27. Assuming a P/E contraction to 100–105x, the 2027 target is justified—but remains speculative.

BHEL Share Price Target 2028

Year	Share Price Target 1	Share Price Target 2
2028	₹280	₹340

By 2028, benefits from defense orders and EV component manufacturing may support margins. A P/E of 95–100x on projected EPS of ₹2.80–₹3.00 supports the ₹280–₹340 band.

BHEL Share Price Target 2029

Year	Share Price Target 1	Share Price Target 2
2029	₹290	₹370

Long-term tailwinds include India’s energy transition and PLI schemes for heavy engineering. If competition doesn’t erode pricing, EPS could reach ₹3.00–₹3.30 by FY29. At a P/E of 90–100x, the 2029 target is ₹290–₹370.

BHEL Share Price Target 2030

Year	Share Price Target 1	Share Price Target 2
2030	₹300	₹400

Over a five-year horizon, BHEL remains a policy-driven, low-return PSU—not a compounder. A terminal P/E of 90–105x on FY30 EPS (~₹3.20–₹3.50) justifies the ₹300–₹400 range.

Bharat Heavy Electricals Limited (BHEL): Shareholding Pattern

Category	Holding (%)
Promoters (Govt. of India)	63.17%
Domestic Institutional Investors (DII)	19.70%
Public & Retail	10.85%
Foreign Institutional Investors (FII)	6.28%

High promoter holding ensures policy alignment. Strong retail participation reflects speculative interest.

Bharat Heavy Electricals Limited (BHEL): Strengths vs Risks

Strengths:

Monopoly in thermal power equipment
Strategic importance in energy security and defense
Debt/Equity reduced to 0.12x (from 0.8x in 2020)
Order book at ₹60,000+ Cr (highest in 5 years)

Risks:

Extremely high P/E (108x) with near-zero ROE (2.05%)
Operating margins remain below 5%
Legacy workforce and low asset turnover
Contingent liabilities of ₹15,200 Cr require monitoring

Investment Suitability

Factor	Assessment
Risk Profile	High
Ideal Time Horizon	5+ years (speculative)
Volatility	Very High (Beta > 2.0)
Dividend/Income Potential	Negligible (0.20% yield)
Best For	Aggressive investors betting on India’s energy infrastructure revival

Is BHEL a good stock to buy?

Only suitable for high-risk, thematic portfolios. Avoid if you seek stable earnings, consistent dividends, or reasonable valuations. BHEL is primarily a policy-driven turnaround bet rather than a quality compounder.

What is the price target for BHEL in 2026?

Based on current fundamentals and order visibility, the estimated BHEL share price target for 2026 is ₹260 – ₹290.

Is BHEL a defence stock?

Partially. Around 10% of revenue comes from defense-related projects such as naval guns and ship systems. However, BHEL remains primarily a power equipment and engineering company, not a pure-play defense stock.

Why is BHEL stock falling?

Despite periodic rallies, the stock corrects due to:

Extreme overvaluation with P/E above 100x
Very low ROE (around 2.05%) despite profit growth
Concerns over execution delays in large infrastructure projects

Strong order inflows offer short-term support but do not fully address profitability issues.

Is BHEL good for long term?

Only if India aggressively revives thermal power capacity and successfully scales green hydrogen initiatives. Long-term success depends on a sustained improvement in profitability, not just topline growth.

Which share is best for 2030 for long term?

Quality + growth: TCS, Infosys, HDFC Bank
Thematic bets: IRFC (railways), BEL (defense), Adani Ports (infrastructure)

BHEL is generally not preferred due to weak capital efficiency and inconsistent returns.

Final Verdict

BHEL is a high-risk, policy-dependent PSU with strategic relevance but weak fundamentals. While order inflows offer near-term optimism, its abysmal ROE and sky-high P/E make it unsuitable for conservative investors.

Our BHEL share price target 2026–2030 (₹260 to ₹400) reflects cautious optimism—rooted in policy tailwinds but tempered by execution risk. Upside is limited by valuation; downside remains steep due to earnings fragility.

Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.

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