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BHEL Surges to 52-Week High on Profit Turnaround
20 Jul
Summary
- BHEL posted its first June-quarter profit in eight years.
- Company revenue jumped over 40% year-on-year to Rs 7,697.72 crore.
- Brokerages maintain a bullish outlook with increased price targets.
Bharat Heavy Electricals (BHEL) has reached a new 52-week high, marking a significant financial turnaround. The company reported its first profit in the April-June quarter (Q1 FY27) in eight years, posting nearly Rs 377 crore. This contrasts sharply with a net loss of Rs 455.5 crore in the same period last year.
Revenue from operations saw a substantial increase of over 40% year-on-year, reaching Rs 7,697.72 crore. BHEL's operating profit margin improved significantly to 6.69% in Q1 FY27 from a negative 9.54% in Q1 FY26. The company's net worth also grew by more than 9% year-on-year.
Following these strong results, BHEL shares climbed to Rs 446.50 on Friday. Brokerage firms are optimistic about BHEL's future. ICICI Securities maintained its 'Buy' call, raising the target price to Rs 520, citing improved project execution and a substantial Rs 2.6 trillion order book. JM Financial also reiterated a 'Buy' rating with a target of Rs 481, highlighting the company's positive performance and its inclusion as a top pick.
The company's stock has seen impressive returns, with over 43% growth year-to-date in 2026. Long-term returns stand at 67% over one year, 336% over three years, and 561% over five years, underscoring BHEL's resurgent market performance.
