BHEL Surges on ₹5,400 Cr Order, UBS Eyes 35% Upside

INDUSTRIAL-GOODSSERVICES

Overview

UBS reiterates 'Buy' on Bharat Heavy Electricals Ltd (BHEL) with a Rs 375 target price, signaling over 35% upside. This comes after BHEL secured a Rs 5,400-crore coal gasification order, boosting FY26 inflows and offsetting recent selloff fears triggered by potential policy shifts. Strong execution visibility underpins the bullish outlook.

UBS Reiterates Bullish Stance

Shares of Bharat Heavy Electricals Ltd (BHEL) are drawing investor attention following a 'Buy' call from UBS, which has set a target price of ₹375 per share. This recommendation suggests a potential upside exceeding 35% from recent trading levels. The brokerage firm's positive outlook is bolstered by significant order wins and clear execution visibility.

Major Coal Gasification Order Boosts Inflows

BHEL recently secured a substantial ₹5,400-crore order for a coal gasification and raw syngas cleaning plant. This significant win pushes its order inflows for Fiscal Year 2026 to approximately 60% of the full-year target. The order, awarded by BCGCL, a joint venture between Coal India and BHEL, represents the first commercial application of BHEL's proprietary Pressurised Fluidised Bed Gasification (PFBG) technology.

Overcoming Policy Worries

The brokerage's optimistic view emerges after BHEL stock experienced a sharp selloff, declining nearly 9% on Thursday. This dip was attributed to concerns over potential Indian government policy shifts that could ease restrictions on Chinese companies participating in tenders, intensifying competition. Despite these near-term policy uncertainties, UBS highlights BHEL's improving order book, technological advantages, and a robust execution pipeline as key strengths supporting its 'Buy' recommendation.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.