BHEL Shares Rally 13% In Two Days As Brokerages Stay Bullish On Strong Q4 Earnings

BHEL shares extended rally comes after stock hit upper circuit on Monday, May 4.

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Shares of Bharat Heavy Electricals Limited (BHEL) surged 3% today, May 5, continuing gains from the previous sessions after the PSU reported fourth quarter earnings for the previous fiscal.
BHEL shares advanced 3.01% intraday to Rs 388.4  apiece. The scrip was trading 1.17% higher by 11:02 a.m. The benchmark NSE Nifty 50 was down 0.8%.

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Photo Credit: BHEL Website


The extended rally comes after the shares hit upper circuit on Monday, May 4 with the stock accounting for gains of 10% compared to Friday's closing price of Rs 352.4. 

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 This comes following  the PSU's strong Q4FY26 earnings, where profit doubled on a year-on-year basis. Revenue for BHEL also surged 36.9% to Rs 12,310 crore compared to Rs 8,993 crore in the year-ago period. Revenue was driven by other income of Rs 243 crore for the quarter.

Morgan Stanley on BHEL

  • The brokerage maintained 'Overweight' and hiked target price to Rs 444.
  • It said that the Q4 results ahve been surprisingly strong
  • Macro positioning for the stock is improving in an Indian context
  • Morgan Stanley believes BHEL's turnaround could continue to surprise markets

Kotak Securities on BHEL

  • The brokerage maintained 'Sell' and hiked target priced to Rs 140 from  previous target of Rs 120
  • The PSU has reported good results after a while
  • Strong execution and gross margin expansion drive beat
  • Cash flows from operations boosted by flat receivables YoY
  • Coal gasification an added opportunity, where BHEL has strong positioning

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