Bharat Heavy Electricals Limited (BHEL) Fair Value & Analysis

Industrials · IN · Market cap ₹1.4T

A solid business, but screening 76% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (₹119.87). The favourable scenario is already priced in.
• Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range ₹41.54 – ₹435.40 · fair‑value band ₹72.38 – ₹119.87 · the ₹408.15 price screens above the ₹96.51 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Bharat Heavy Electricals Limited (BHEL) currently trades at ₹408.15, while our model-based Fair Value estimate is ₹96.51, implying the stock looks roughly 76.4% overvalued today. We read business quality at 68/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Bharat Heavy Electricals Limited generated revenue of ₹338B at a net margin of 4.7%. Revenue grew 36.9% year over year. It earns a return on equity of 6.3%. The balance sheet holds a net cash position of ₹36.8B. Fundamentals as of Jul 15, 2026

Our scenario range runs from ₹72.38 (bear case) to ₹119.87 (bull case); at ₹408.15, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 4% below its 52-week high and 99% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -76%, BHEL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models (₹173.28) versus Dividend Discount (₹7.74). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Bharat Heavy Electricals Limited operates as power plant equipment manufacturer in India and internationally. The company operates in two segments: Power and Industry.

Full company description

Bharat Heavy Electricals Limited operates as power plant equipment manufacturer in India and internationally. The company operates in two segments: Power and Industry. It offers equipment supplies; spares and services; and undertakes engineering, procurement, and construction works for coal and lignite, gas, hydro and nuclear power plant, as well as for transportation, transmission, defence, aerospace, captive power plants, process, renewables, upstream and downstream oil and gas, e-mobility and energy storage, and other industries. The company also provides coal based, gas-based, nuclear, and hydro power plants, as well as solar power systems; transportation and transmission systems; defense and aerospace products; industrial systems; energy storage system and e-mobility solutions; and hydrogen power systems. In addition, it offers steam generators and steam generator auxiliaries, soot blowers, valves, piping systems, seamless steel tubes, pressurized fluidized bed gasifiers, steam and gas turbines, turbo generators, industrial sets, castings and forgings, condenser and heat exchangers, pumps, compressors, solar photovoltaics, and automation and control systems. Further, the company provides software system solutions, medium voltage vacuum switchgears, on load tap changers, LT switchgears and bus ducts, transformers and reactors, capacitors, bushings, control gears, insulators and ceramics, and electrical machines. It also provides rail transportation systems and equipment, oil field equipment, and fabricated equipment and mechanical packages. The company has a strategic collaboration with E2S Company Limited for the development of excitation systems for synchronous machines. The company was incorporated in 1964 and is based in New Delhi, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Bharat Heavy Electricals Limited reported revenue of ₹338B in FY2026 versus ₹202B in FY2022, a compound +13.8%/yr. Reported net income was ₹16.0B in FY2026, compounding +37.6%/yr from FY2022.

BHEL screens 76% overvalued. Compare with GE Vernova Inc →

Peer Group

Specialty Industrial Machinery · 807 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.