BHEL share price target is closely monitored by investors and analysts as Bharat Heavy Electricals Limited (BHEL) is a substantial player in the Indian heavy electrical apparatus industry and has significant influence on the sector and overall market dynamics. The following article provides a comprehensive examination of BHEL share price targets for 2025, 2030, 2035, 2040, 2045, and 2050, offering a glimpse into the company’s future development prospects and industry trends.
Company Overview
Bharat Heavy Electricals Limited (BHEL) is a state-owned engineering and manufacturing corporation situated in New Delhi, India. It is a major player in the energy, infrastructure, and transportation sectors, and is one of the main manufacturers of power generation equipment in the country. Power plant equipment, industrial systems, and renewable energy solutions comprise BHEL’s extensive product portfolio.
Current Share Price
Past 5 Years Analysis: Revenue and Profit
Below is a table that summarises BHEL’s growth over the last five years in order to give a better understanding of the company’s performance:
| Year | Revenue Growth (%) | Profit / Loss |
|---|---|---|
| 2020 | -29.133% (decrease) | -1,472.97 |
| 2021 | -26.063% (decrease) | -2,717.14 |
| 2022 | 23.6741% (increase) | 410.24 |
| 2023 | 9.83914% (increase) | 447.55 |
| 2024 | 7.93484% (increase) | 259.89 |
BHEL has exhibited a robust recovery from substantial losses and declining revenue. Although the rate of revenue growth is decreasing, the potential to maintain profitability is promising.
Financial Table (as of July 2024)
| Company Name | Bharat Heavy Electricals Ltd. |
|---|---|
| Market Cap | ₹ 1,07,439 Cr (As of July 2024) |
| P/E Ratio | 4.40 |
| Industry P/E | 91.65 |
| Debt to Equity Ratio | 0.36 |
| ROE | 1.15% |
| Dividend Yield | 0.08% |
| 52 Week High | INR 335.35 |
| 52 Week Low | INR 94.10 |
| P/B Ratio | 4.40 |
| EPS (TTM) | 0.81 |
| Official Website | Bharat Heavy Electricals Ltd. |
Performance Analysis
The company has seen a 32.07% increase in profits over the past three years, despite modest revenue growth. Its promoter holding is high, indicating strong stakeholder confidence. However, the company has experienced negative cash flow and subpar ROE and ROCE. Despite these challenges, it has a low tax rate and high operating leverage. To ensure long-term stability, the company needs to improve revenue growth and returns on equity and capital.
Factors Influencing BHEL Share Price Target
- Quarterly Results: Despite a Q2 net loss of Rs 2.4 billion, BHEL shares rose due to a strong order book and promising thermal power orders. Market experts highlight a positive near-term outlook and moderated receivables, boosting investor confidence.
- Positive Outlook for BHEL Amid Challenges: BHEL faces concerns like elevated inflation, higher interest rates, and geopolitical uncertainties. However, it benefits from a strong domestic economy. Industrial activity, measured by the IIP, grew by 6.1% from April to August 2023, indicating expansion in sectors such as cement, steel, and refinery. This growth drives higher demand for capital goods, benefiting BHEL.
- Strong Order Book Boosts BHEL Outlook: As of September 2023, BHEL’s robust order book stands at Rs 1.14 trillion, driven by thermal power sector growth. Major projects include Vande Bharat train sets and NTPC, Adani, and NHPC orders. With 71% coming from power, 25% from industry, and 4% from abroad, BHEL’s comprehensive manufacturing strengthens its positive outlook.
BHEL Share Price Target 2025
BHEL’s share price target is expected to increase in the short term as a result of the favourable market conditions and the company’s ability to distribute a generous dividend to its shareholders. Analysts project a consistent rise in growth, driven by increased ROE and rising profits. The share price target for 2025 is anticipated to fall within the range of INR 365.90–INR 389.68, indicating moderate growth and favourable investor sentiment.
BHEL Share Price Target 2030
BHEL’s objective is to reinforce its market position by 2030 by diversifying and expanding into renewable energy. The expansion of BHEL will be facilitated by the increasing demand for clean energy solutions. The company’s robust financial performance and favourable industry outlook have led analysts to predict a share price target of INR 480 to INR 490.
BHEL Share Price Target 2035
Driven by the company’s dominance in the heavy electrical equipment sector and technological advancements, the share price target for 2035 is INR 780 to INR 920. The long-term growth of BHEL will be facilitated by the integration of smart grid solutions, IoT, and AI in power systems.
BHEL Share Price Target 2040
BHEL’s target share price for 2040 is INR 1400 to INR 1500. This projection is predicated on the continuous innovation, expansion of digital solutions, and critical role of BHEL in the development of India’s infrastructure. Consistent growth is anticipated due to the company’s global reach, diverse product portfolio, and solid market position.
BHEL Share Price Target 2045
The share price target for 2045 is INR 1900 to INR 2100. This forecast takes into account BHEL’s expected leadership in renewable energy initiatives and next-generation technologies, as well as its significant contribution to India’s developed infrastructure ecosystem. BHEL’s ability to adapt to changing market needs, as well as its potential to enter new markets, are key growth drivers.
BHEL Share Price Target 2050
By 2050, BHEL’s share price is expected to range between INR 2750 and INR 2900. This long-term forecast is based on BHEL’s expected position as a major player in the global heavy electrical equipment industry, leveraging cutting-edge technologies. Significant growth is expected to be driven by the company’s participation in global projects, market expansion, and ongoing innovation.
BHEL’s Shareholding Pattern
| Investor Type | Percentage of Shares (%) |
|---|---|
| Promoters | 63.17 |
| Retail and Others | 12.71 |
| Other Domestic Institutes | 9.66 |
| Foreign Institutes | 9.10 |
| Mutual Funds | 5.36 |
This table indicates a mix of institutional and retail investors, with the promoters holding a significant stake. This diverse ownership structure provides stability and long-term support for the company’s growth strategies.
Conclusion
BHEL’s share price targets for 2025, 2030, 2035, 2040, 2045, and 2050 are consistent with the company’s strong growth prospects and favourable industry outlook. Despite challenges, BHEL is well-positioned for long-term success thanks to its strong market position, innovative capabilities, and strategic initiatives. Before making any investment decisions, investors should take these projections into account and conduct extensive research.
Disclaimer
The information provided in this blog is for educational purposes only and does not constitute financial advice. Investors should research and consult with a financial advisor before making investment decisions.
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Greetings, I am Harsh, a financial analyst who is committed to simplifying the intricacies of share pricing. I specialize in the provision of data-driven, insightful information that enables investors to make informed decisions, drawing on my extensive experience in market analysis and my ability to identify emergent trends. I employ a combination of real-time market analysis and meticulous research to provide actionable and precise information. I aim to provide you with the necessary tools and insights to effectively navigate the stock market, regardless of whether you are a seasoned investor or new to the financial sector. Participate in my investigation of the ever-changing realm of share prices.
