Bharat Heavy Electricals Limited (BHEL.NS) fair value
Industrials · Specialty Industrial Machinery · NSE · India
₹387.50-2.86%
Market cap ₹1.35TNext earnings 2026-10-14Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionBharat Heavy Electricals Limited (BHEL.NS)
Fair value
Not available
ACCE price target
₹380
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹388 at the close on 23 Oct 2026, 12:00 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
67
out of 100
P/E
55.4x
forward 26.5x
1-year return
+65.4%
Dividend yield
0.35%
Bharat Heavy Electricals Limited in four questions
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Overview
ACCE thesis
Bharat Heavy Electricals makes the boilers, turbines, generators and transformers that Indian utilities buy for thermal and hydro power plants, along with railway traction equipment and defence electronics. Its moat is mostly incumbency: as the state-owned default supplier to public power projects, it has decades of installed base and qualification history that private competitors have struggled to match. Revenue grew 23.8% over the last year, and a 32.9% gross margin against a 10.1% operating margin points to heavy overhead absorbing much of the gross profit, which is the number to probe in the deeper work. At 57.1 times trailing earnings but 27.3 times forward, the market is pricing a sharp earnings recovery, and the 11.3% ROE says that recovery has not yet arrived. The thesis rests on whether order execution and margin expansion close that gap, and that needs checking against order book and cost data before any view is formed.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Heavy insider selling
Insiders disclosed INR 1,365.86M in sales across the last 10 filings and zero buys. With insiders holding 59.8%, that is a material signal worth weighing.
moderate
Trades above ACCE target
The price of ₹387.50 sits 2.0% above the ACCE price target of ₹380.00, leaving less valuation cushion at current levels.
moderate
Rich valuation multiples
Trailing P/E of 57.1 and EV/EBITDA of 41.8 are high, so the stock depends on sustained earnings growth to justify the price.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue grew 23.8% over the last year, well ahead of its 13.1% average annual pace over five years.
Latest quarterly earnings per share beat expectations by 22.7%, coming in at 2.36 against 1.92 expected.
Analysts' mean price target of INR 436.79 sits 9.5% above the current share price.
Why it could disappoint
The stock trades at a trailing P/E of 57.1x, a steep multiple for a company with an 11.3% return on equity.
Net margin of 7.6% and a dividend yield of 0.3% leave little cushion or cash return for shareholders.
The shares trade 2.0% above the ACCE price target of ₹380.00, so our own valuation sees less upside.
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