Bharat Heavy Electricals Limited (BHEL) Fair Value & Analysis
Industrials · IN · Market cap ₹1.5T (≈ $15.7B) · ISIN INE257A01026
What is Bharat Heavy Electricals Limited really worth?
A solid business, but trading 455% above our fair value of ₹78.13.
As of Aug 19, 2026, the fair value of Bharat Heavy Electricals Limited is ₹78.13 per share against a price of ₹433.35, so the fair value sits 82% below the price. A model estimate blended from multiple valuation models, recalculated regularly.
Strengths
Risks
Fair value as of: Aug 19, 2026
From 24 valuation models · updated 18 days ago
Share price +5.6% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case (₹97.66). The favourable scenario is already priced in.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
- Solid but not exceptional quality (61/100) 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 Aug 19, 2026.
How to read this chart
60‑month range ₹41.28 – ₹435.40 · fair‑value band ₹58.60 – ₹97.66 · the ₹433.35 price screens above the ₹78.13 fair value. Dashed = 300-day average. As of Aug 19, 2026.
Analysis
Bharat Heavy Electricals Limited (BHEL) currently trades at ₹433.35, while our model-based Fair Value estimate is ₹78.13, implying the stock looks roughly 454.6% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of ₹156.12 per share, and 0 of the 24 models we run sit above the ₹433.35 price. Bear case: the Earnings-Based group reads lowest at ₹34.74, and 24 of the 24 models stay below the price. Evidence for this calculation is low.
Over the trailing twelve months, Bharat Heavy Electricals Limited generated revenue of ₹360B at a net margin of 6.8%. Revenue grew 40.3% year over year. It earns a return on equity of 6.3%. Net debt stands at ₹65.1B. Fundamentals as of Aug 19, 2026
Our scenario range runs from ₹58.60 (bear case) to ₹97.66 (bull case); at ₹433.35, 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 share trades about 3% below its 52-week high and 112% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −82%, BHEL screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹4.78 per share, which is 5.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: DCF Models (₹156.12) versus Earnings-Based (₹34.74). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 84
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Bharat Heavy Electricals Limited operates as engineering and manufacturing company in India and internationally. The company operates in two segments: Power and Industry.
Full company description
Bharat Heavy Electricals Limited operates as engineering and manufacturing company in India and internationally. The company operates in two segments: Power and Industry. It offers coal based, gas-based, nuclear, and hydro power plants, as well as solar power systems; transmission systems; defense and aerospace products; industrial systems; and energy storage system and e-mobility solutions. The company also provides steam generators and steam generator auxiliaries, soot blowers, valves, piping systems, seamless steel tubes, pressurized fluidized bed gasifiers, steam turbines, turbo generators, industrial sets, castings and forgings, condenser and heat exchangers, pumps, centrifugal compressors, solar photovoltaics, and automation and control systems. In addition, it offers 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. Further, the company provides rail transportation systems and equipment, oil field equipment, fabricated equipment and mechanical packages, and desalination and water treatment plants. It serves customers in power-thermal, transmission, transportation, renewables, water, oil and gas, defense and aerospace, hydro, gas, nuclear and solar PV, energy storage, electric mobility, petrochemicals, and other industries. 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
FY2021 – FY2025 · reported fiscal years
Bharat Heavy Electricals Limited reported revenue of ₹324B in FY2025 versus ₹212B in FY2021, a compound +11.1%/yr. Reported net income was ₹16.0B in FY2025, compounding +37.6%/yr from FY2021.
BHEL screens 455% overvalued. Compare with GE Vernova Inc →
Peer Group
Specialty Industrial Machinery · 792 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
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| GE Vernova Inc GEV | $941.84 | $131.95 | −86% |
| SIE SIE | €289.85 | €139.77 | −52% |
| Eaton Corporation ETN | $402.78 | $168.65 | −58% |
| Parker-Hannifin Corporation PH | $995.02 | $398.69 | −60% |
| Atlas Copco AB ATCOA | kr 206.60 | kr 112.59 | −46% |
| Cummins Inc CMI | $564.40 | $348.94 | −38% |
| Illinois Tool Works Inc ITW | $270.12 | $145.84 | −46% |
| Emerson Electric Co EMR | $155.18 | $58.44 | −62% |
| AMETEK, Inc AME | $236.25 | $125.80 | −47% |
| Rockwell Automation, Inc ROK | $417.53 | $125.76 | −70% |
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