BHEL Shares Crack After Muted Q4 Results; Analysts Warn of BIG Drop Ahead; Know Details

BHEL Share Price: Shares of Bharat Heavy Electricals Limited (BHEL) remained under pressure on Monday, days after the engineering giant reported weaker-than-expected Q4 results on Friday. Analysts have predicted a downside for the stock in the long term in the wake of weak execution of orders.

According to BSE, BHEL touched an intraday low mark of Rs 243.15 per share on the BSE on Monday. BHEL shares also tumbled 2% on BSE. After witnessing a significant spurt in volatility, BSE stock closed 2.66% lower at Rs 243.70 per share on BSE with a market capitalisation of Rs 84,857.88 crore.

BHEL Stock Price Recommendation

As BHEL shares continued to showcase volatility, Kotak Institutional Securities has hinted at a 54% downside in the stock price in the long run.

BHEL's earnings before interest, tax, depreciation and amortisation (EBITDA) was an 8% miss, and the weak execution of orders in the power segments emerged as the key disappointment, according to Kotak Institutional Securities.

"The working capital situation was ameliorated by strong customer advances and otherwise remains weak. Cut FY2026/27 estimates by 19%/3%; retain DCF-based FV at Rs115 net of roll-forward," noted Kotak Institutional Securities in its report released on Tuesday.

The brokerage has also downgraded BHEL's profit projections, along with hinting at a decline in its EBITDA margins.

"We cut estimates on a slower pace of execution, driving 22%/9% lower FY2026/27 EBITDA. The cut in PAT is lower on higher other income, factoring in advances to a higher 8% share of order backlog from 6%. We roll forward to our DCF-based FV of Rs115 (unchanged), implying ~11X March 2027E EPS. We believe that DCF is a better way of valuing BHEL for the business having negligible FCF generation over the growth phase of revenues FY2025-30 and a stable FCF phase thereafter," Kotak Institutional added in its report.

Weak Execution of Orders in Power Segment

While BHEL reported a 7% annual increase in its order inflows during the fourth quarter of the financial year 2024-25. Due to weak execution of orders in the power segment, BHEL's ability to expand execution will remain a key factor to be watched in the coming months.

"The 4Q power segment's revenue print being flat yoy is concerning in this context. Working capital supported by advances, otherwise remains concerning The working capital change in FY2025, excluding advances, has increased to Rs62 bn versus Rs48 bn in FY2024. The inventory build-up more than negated the effect of reducing trade receivables as a share of sales. However, the strong ~Rs80 bn of customer advances (net) received throughout the year yielded a steady cash from operations of Rs22 bn versus Rs(-)37 bn a year ago," the report added.

BHEL Q4 Result

BHEL's net profit increased nearly 3% YoY and around 300% quarter on quarter (QoQ) to Rs 504 crore during the March quarter of financial year 2024-25. The company had reported a net profit of Rs 124.77 crore in the December quarter, and a profit of Rs 484.36 crore during the year-ago period.

BHEL's revenue from operations stood at Rs 8993.37 crore against Rs 7277.09 crore reported in the previous quarter. Its revenue from operations stood at Rs 8260.25 crore during the same period year-ago.

FAQs

How Much Profit BHEL Reported in Q4?

BHEL's net profit increased nearly 3% YoY and around 300% quarter on quarter (QoQ) to Rs 504 crore during the March quarter of financial year 2024-25. The company had reported a net profit of Rs 124.77 crore in the December quarter, and a profit of Rs 484.36 crore during the year-ago period.  BHEL's revenue from operations stood at Rs 8993.37 crore against Rs 7277.09 crore reported in the previous quarter. Its revenue from operations stood at Rs 8260.25 crore during the same period year-ago.

What Is The Closing Price of BHEL For Today?

BSE stock closed 2.66% lower at Rs 243.70 per share on BSE with a market capitalisation of Rs 84,857.88 crore. According to BSE, BHEL touched an intraday low mark of Rs 243.15 per share on the BSE on Monday. BHEL shares also tumbled 2% on BSE. BHEL touched a 52-week-high mark of Rs 335.40 per share on 9 July, 2024 and a 52-week low mark of Rs 176 per share on 3 March, 2025