UBS has recommended buying BHEL shares with a price target of Rs 375, suggesting the stock could rise more than 35% from its current level.
Why UBS is bullish on BHEL
The brokerage sees strong recent order wins and clearer visibility on future projects. These factors give UBS confidence that BHEL’s earnings could improve.
Recent price drop and policy concerns
On Thursday, BHEL fell about 9% after a report said India might lift restrictions on Chinese companies in government tenders. The share hit a 10% intraday circuit breaker and closed at Rs 276.9, erasing some earlier gains.
Key order win and future revenue
- BHEL secured a Rs 5,400‑crore coal gasification and raw syngas cleaning plant order.
- The project, awarded to its joint venture BCGCL, uses BHEL’s Pressurised Fluidised Bed Gasification (PFBG) technology.
- The contract includes a 42‑month construction phase and a 60‑month operations‑and‑maintenance period, giving steady revenue.
- With this deal, BHEL’s FY26 order inflow now covers about 60% of its full‑year expectations.
What investors should consider
Although policy uncertainty has weighed on capital‑goods stocks, UBS believes BHEL’s strong order book, unique technology, and long‑term execution contracts put it in a better position. The company’s market value is roughly Rs 94,700 crore.
Remember, this is just my take, not a prediction. Do your own research before making any investment decisions.