BHEL Slides as Profit Jumps; Brokerages Lift Targets
BHEL reported higher quarterly revenue and profit, while Nuvama and JM Financial raised their price targets after margin gains.
Key takeaways
- BHEL's September-quarter profit rose 119% year over year to Rs 821 crore.
- Revenue increased 24% to Rs 9,300 crore.
- Nuvama and JM Financial raised their price targets after reporting stronger margins.
- Fresh order inflows fell 85% year over year, while the order book stood at Rs 2.6 lakh crore.
Bharat Heavy Electricals shares fell 4.30% to Rs 444.05 in Thursday trading, despite a 119% year-on-year rise in September-quarter profit to Rs 821 crore. Revenue from operations increased 24% to Rs 9,300 crore.
As of 05:53 UTC on Thursday, the shares were at Rs 443.50, down 4.42% since the previous close. The company’s reported quarterly results followed a rally of nearly 5% in the previous session.
Nuvama Institutional Equities maintained its Buy rating and raised its target price to Rs 540 from Rs 530. It said EBITDA margin expanded 330 basis points year over year to 11%, above its 8.5% estimate, while fresh order inflows fell 85%. Nuvama projects the margin will reach 13.8% by FY29.
JM Financial Institutional Securities also kept its Buy rating and raised its target price to Rs 535. It cited improved execution and margins, and lifted its FY28 and FY29 EBITDA margin estimates to 13.2% and 15%, respectively.
BHEL’s order book stood at Rs 2.6 lakh crore, according to the report. JM Financial also said the company’s working capital cycle improved to 141 days from 164 days in FY26.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
