
Bharat Heavy Electricals Limited (BHEL) on Monday fixed August 11 as the record date for the purpose of determining the eligibility of the members to receive final dividend of Re 0.40 per share for the year FY23. The dividend, if approved by the members at the ensuing 59th AGM will be paid within 30 days from the date of declaration of dividend i.e. on or before September 22. The AGM will be held on August 24. BHEL commands a dividend yield of 0.43 per cent.
BHEL share price target
The stock has an average price target of Rs 63, as per Trendlyne, which suggests a 32 per cent downside potential. Antique Stock Broking finds the stock Rs 110 worthy. Prabhudas Lilladher has a target of Rs 67 on the stock. Kotak Institutional Equities has a 'Sell' rating on the stock with a target of Rs 39.
Nuvama Institutional Equities, just upgraded BHEL to ‘BUY’ as near-term thermal capex revival and limited competition (L&T) implies earnings re-rating potential (70 per cent EPS FY23–26E CAGR). This brokerage has raised its target on the stock to Rs 125 from Rs 85, valuing the stock at 22 times FY26E EPS of Rs 6.30.
BHEL Q1 results
Brokerage Prabhudas Lilladher expects BHEL to report a profit of Rs 46.40 crore for the June quarter against a loss of Rs 191.90 crore in the same quarter last year. It sees sales rising 15.2 per cent YoY to Rs 5,379.80 crore.
"Revenue is expected to grow 15 per cent YoY, led by pickup in execution amid low base. Management commentary on execution pace, working capital situation, order pipeline, diversification into non-power segment, margins will be key monitorables
BHEL outlook
With 4-5GW per year of thermal ordering over FY24-28 and at 50 per cent market share (L&T only other competitor), Nuvama is building in 2.4GW of annual thermal OI for BHEL, apart from its regular OI run-rate in our base case.
It estimates an EPS CAGR of 70 per cent over FY23-26E, despite conservative assumptions of delayed execution pickup by H2FY25-FY26.
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