BHEL Share Price Target 2022, 2023, 2024, 2025, 2030

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This article will provide you with deep insights into India’s leading engineering company, Bharat Heavy Electricals Limited (BHEL). Also, we give hidden knowledge of this company. We will give you the right knowledge about whether the investment in this company’s share is a thing of profit or loss.

Apart from all of the above, we will try to predict the share price target on BHEL or BHEL Share Price Target 2022, 2023, 2024, 2025, and 2030 for the upcoming years. So, stay with this interesting article.

BHEL Share Price Target 2022, 2023, 2024, 2025, 2030

BHEL Share Price Target

Bharat Heavy Electricals Limited (BHEL) was established in 1956 under the ownership of the Ministry of Heavy Industries, Government of India. The headquarters of the company is located in New Delhi, India.

BHEL was established ushering in the Heavy Electrical Equipment industry in India. Later in 1974, this company was merged with BHEL.

As per the latest data 32,131 employees working in this company. Mr. Nalin Shinghal is the Chairman and Managing Director of the company.

Busniess Model of BHEL

BHEL is one of the largest engineering and manufacturing companies in India. BHEL is an integrated power plant equipment manufacturer, engineering and manufacturing company in the country. Thus the company is a leader in the international market in the power sector.

Bharat Heavy Electricals Limited is engaged in the design, manufacture, engineering, construction, commissioning and servicing of a wide range of products.

These products belong to sectors like Power Generation, Transmission, Transportation, Industry, Renewable Energy, Oil & Gas, Water, E-Mobility & Energy Storage Solutions and Defence & Aerospace.

The company has also exported its power and industry segment products. The company’s business is spread across over 76 countries of the world. BHEL’s total overseas installed capacity exceeds 9,000 MW across 21 countries including Oman, Iraq, Malaysia, Bhutan, Egypt, UAE, and New Zealand.

BHEL Share Price Target 2022

BHEL is working in the engineering sector which makes industrial equipment. The current market capitalization of the company is approx. ₹ 17,500 Cr. Sector P/E is 42.79 and stock P/E is 42.82.

The current stock price of the company is range-bound from ₹48-₹52.

The involvement of BHEL in power generation, transmission, solar EPC propulsion and traction has been significant over the years. The company also has a large share in the supply of equipment across the country for thermal projects.

These are the BHEL Share Price Target 2022.

BHEL Share Price Target 2022
First Target ₹58.00
Second Target ₹60.50

Related:

BHEL Share Price Target 2023

This government-backed company was doing great. But in the last two financial years, the company is in a loss, which is a serious concern.

Attain profitability status in the future will be very tough for the company. Because BHEL is facing intense competition in the power sector.

If the company will not able to increase its revenue then the stock price of the company may further go down.

BHEL Share Price Target 2023
First Target ₹63
Second Target ₹68

BHEL Share Price Target 2024

The main reason behind the revenue drop is the sluggish order book of the company.

But there are too many positives also. Considering BHEL’s significant business integration and a wide range of products, especially power equipment, The company has a capacity to deliver up to 20 GW in a year.

The company has a large net worth. Also, a cash balance of ₹ 6,701.43 cr. is also shown in the books of the company.

BHEL Share Price Target 2024
First Target ₹75
Second Target ₹82

BHEL Share Price Target 2025

In the business of the company, the power segment has traditionally contributed to 70-80% of revenue. Profitability remains susceptible to volatility in the power sector.

In the long term, there is a low chance that this stock will give you a handsome return. I may be wrong if the company does some extraordinary.

The following are the BHEL Share Price Target 2025:

BHEL Share Price Target 2025
First Target ₹89
Second Target ₹98
BHEL Share Price Target
Source: Google

BHEL Share Price Target 2030

There are many upward factors like strong liquidity, Maharatna status, and a strong network.

Also, there are many downward factors viz. weakening of business risk profile, new players entry, profitability under pressure.

So, as a long-term investor always thinks for a long.

BHEL Share Price Target 2030
First Target ₹138
Second Target ₹147

Strengths of the company

Financial strengths:

  • BHEL has an efficient Cash Conversion Cycle of -70.75 days.
  • A high promoter holding of 63.17%.
  • The company has a strong degree of Operating leverage, Average Operating leverage of 107.45.

Other strengths:

  • The company has laid out its situation its position in building India’s capability in heavy electrical equipment manufacturing over almost five decades.
  • BHEL has a leading position in the power generation and electrical equipment markets.
  • For executing large orders the company has a strong manufacturing and engineering base with adequate availability of resources.
  • The Majority stake with the government and enjoying “Maharatna status.

Weaknesses of the company

Financial weaknesses:

  • BHEL has shown a poor profit growth of -212.84% for the past 3 years.
  • The company has shown poor revenue growth of -15.62% for the last 3 years.
  • The company had a poor ROE of -1.36% over the last 5 years.
  • The company had a poor ROCE of -0.83% over the past 3 years
  • BHEL has a low-Interest coverage ratio of -6.76.
  • Low EBITDA margin of -10.97% over the past 5 years.
  • The debt burden of ₹ 4,833.78 Cr.

Other weaknesses:

  • High competition in the power sector and new business segments.
  • Heavy working capital requirements.

Shareholding pattern of BHEL

Public 20.02%
Promoters 63.17%
FII 4.22%
DII 12.59%
Others 0%

Annual Reports of the company:

Competitors of BHEL

Larsen & Toubro, Hindusthan Aeronautics, Bharat Ele, and Sona BLW are some big competitors of the company.

Related:

BHEL Share Price Target 2022, 2023, 2024, 2025, 2030

BHEL Share Price Targets for Long Term
First Target (2022) ₹58
Second Target ₹60.50
First Target (2023) ₹63
Second Target ₹68
First Target (2024) ₹75
Second Target ₹82
First Target (2025) ₹89
Second Target ₹98
First Target (2030) ₹138
Second Target ₹147

Final Thoughts

Bharat Heavy Electricals Limited (BHEL), generates a negative CAGR return of 11.6% in the last three years. Also, this company is not paying any attractive dividends.

There are too many risks and threats in this company. Although there are too many positives also. But all the positives belong to the past and threats belongs future. In my opinion, I am not so bullish on this script. This is my personal view, your thought may differ from mine. Your thoughts are invited in the comment box.

So, Friends if you like the article BHEL Share Price Target 2022, 2023, 2024, 2025, and 2030 then please share it with your friends on social media networks.

Disclaimer – In this article we have just evaluated the company. Also, we are not SEBI registered advisors. We have not provided any investment advice on this stock. This article is just for educational purposes only. Before making any investment please research yourself or take the advice of your financial advisor.

FAQ :

  1. Who is the CEO of BHEL?

    Mr. Nalin Singhal is the CEO of the company.

  2. Where is the headquarter of BHEL?

    New Delhi, India is the headquarter of the company.

  3. Is this the right time to buy BHEL stock?

    This company is a PSU stock. The history of this stock suggests that it is not able to generate good returns for its investors.

  4. How good is BHEL share to hold for the long term?

    There are too many good stocks that can generate good returns in the long term. No doubt BHEL is a good company. But in the last two years, it makes losses.

  5. Is BHEL a debt-free company?

    There is a debt burden of ₹ 4,833.78 Cr. on the company.

  6. Which company is better BHEL or NTPC?

    At the present time, NTPC looks more attractive.

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