1:5 Split, 2 Bonus, 37 Dividends: Maharatna PSU Stock BHEL Is Rs 7 Away From 1-Yr High; BUY For Rs 320 Target

Maharatna PSU stock Bharat Heavy Electricals Ltd (BHEL) witnessed selling pressure on November 3, 2025. The BSE 200-listed stock is down by a little over 1% on BSE. However, the stock is around Rs 7 away from 52-week high. Also, despite the latest correction, BHEL stock has given over 12% returns in past five sessions, amidst its Q2 results for FY26 which were better than expected. Although analysts have given mixed reviews, JM Financial has recommended BUY for a 12-month target of Rs 320.

Bharat Heavy Electricals Ltd Share Price:

After market hours of November 3rd, the stock closed at Rs 265 apiece on BSE, down by 0.5% with market cap of Rs 92,274.68 crore. During the trading session, BHEL share price plunged by 1.3% to hit an intraday low of Rs 262.85 apiece on Monday.

But from current closing price, the stock is now away by Rs 7 from hitting its 52-week high of Rs 272 apiece. In past five sessions, the overall performance is positive with upside of 12.03% on BSE.

During Q2FY26, BHEL posted net profit of Rs 368 crore which was 3.8 times higher from PAT of Rs 97 crore in Q2FY26. Due to the latest profit, the net loss of BHEL in H1FY26 is narrowed to Rs 87 crore from net loss of Rs 116 crore in H1FY25. Meanwhile, revenue from operations stood at Rs 7,512 crore in Q2FY26, higher from Rs 6,584 crore in Q2FY25. EBITDA also nearly doubled to Rs 763 crore from Rs 393 crore in Q2FY25.

BHEL Share Price Recommendation:

In its Q2 review note, analysts at BHEL said, "the first 2x660MW NTPC Talcher EPC project in the new cycle was awarded to BHEL in Sep'22. Subsequently, the government set the target of adding 80GW of thermal power capacity by 2030, which has now been enhanced to 97GW by FY34. Since then, 45GW of the projects have been ordered. Another 32GW of the projects are tendered or awaiting equipment ordering. We expect BHEL to book orders worth INR 600-700 bn during FY26 and report total order book of at least INR 2,250 bn on Mar'26."

On the valuation, JM's note added, "we believe execution of current orders will further pick up 3QFY26 onwards and revenue/ EPS might reach INR 489bn/ INR 12.7 in FY28, which has upside risk if new ordering accelerates and/or target increases further. We continue to maintain BUY with a revised TP of INR 320 (30x Sep'27 EPS)."

Meanwhile, Amit Anwani, Research Analyst, PL Capital said, "With a robust execution of order backlog and rise in public/private capex, BHEL is well placed for sustained growth. However, the increase in contract assets (~2% YoY to Rs290bn) and CFO of -Rs11.9bn in H1FY26 (vs -Rs9.7bn in H1FY25) will remain key monitorable in near term. The stock is currently trading at a P/E of 25.2x/19.0x on FY27/28E earnings. We roll forward to Sep'27E and maintain our 'Hold' rating valuing the stock at a PE of 22x Sep'27E (22x Mar'27E) with a revised TP of Rs250 (Rs215 earlier)."

BHEL Corporate Actions:

This Maharatna PSU holds healthy record of rewarding investors with stock split, bonus and dividends.

Dividends: BHEL has delivered 37 dividends since September 2003, as per Trendlyne data. In the last 12 months, BHEL's dividend amounted to Rs 0.50 per share. Its current dividend yield is at 0.19%.

Bonus: BHEL has rewarded investors with two bonuses. The first bonus was of 1:1 ratio and was awarded in June 2017, followed by second bonus of 1:2 ratio in September 2017.

Stock Split: BHEL shares have split only once and in the ratio of 1:5. From October 2011, BHEL's face value is down from Rs 10 each to Rs 2 each due to the stock split ratio.

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