Maharatna PSU Stock to Watch: BHEL bags Rs 2,000-crore international order

Maharatna CPSE News: Bharat Heavy Electricals Ltd (BHEL) -- a Maharatna public sector undertaking (PSU) -- said on Wednesday that it has secured an order to the tune of Rs 2,000-2,500 crore from Nigeria's Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise. Dangote is Africa's largest oil refinery that houses the world's biggest single-train facility.

The deal, signed on June 2, involves the design, manufacturing, supply and supervision of erection and commissioning of 8 gas turbine generator packages for
Dangote Industries Free Zone's petroleum refinery and polypropylene plant, according to a regulatory filing.

The order is to be completed within the 26 months from the start date of the contract, the Maharatna CPSE noted.

BHEL shares vs Nifty 50

Earlier on Wednesday, BHEL shares ended 1.2 per cent lower at Rs 406.1 apiece on BSE.

At this level, the Maharatna CPSE stock has rallied 39 per cent so far this year, outperforming the Nifty 50's 10.5 per cent fall.

The stock has surged 60 per cent in a year while the market benchmark has declined 4.6 per cent.

Most analysts have a positive outlook on BHEL citing strong revenue visibility owing to a record order book.

BHEL Q4 FY26 results

For the quarter ended March 31, Bharat Heavy Electricals reported a 37 per cent year-on-year jump in its top line to Rs 12,310 crore, aided by robust execution.

Its quarterly EBITDA more than doubled to Rs 1,753 crore with margin expanding by 498 bps (4.98 percentage points) to 14.2 per cent.

Its net profit for the March quarter jumped 2.5 times to Rs 1,282.7 crore, according to a regulatory filing.

For the full financial year, its revenue grew 19 per cent to Rs 33,782 crore, with order inflows to the tune of Rs 75,000 crore.

ICICI Direct has 'buy' rating on BHEL with Rs 460/share target

Last month, with a 'buy' rating and a target of Rs 460 (based on an FY28 EPS multiple of 30 times), ICICI Direct noted that a good accretion of orders and strong ordering pipeline are set to keep order inflows strong for BHEL coupled with strong pick in execution from FY27E onwards.

This will also aid BHEL's margins and return ratios to improve meaningfully over the next 2-3 years, it noted.

Record order book

Noting that BHEL's record order book provides strong multi-year visibility, the brokerage said that BHEL’s strong order inflow of Rs 75,916 crore in FY26 and a robust outstanding order book of Rs 2.40 lakh crore provides high medium-term revenue visibility across multiple years of execution.

It also mentioned that nearly 81 per cent of the Maharatna PSU's order book is anchored in the power space, positioning it to benefit from the country's renewed thermal capacity additions and infrastructure push.

The brokerage pointed out that BHEL's execution cycle is turning favourable, with a strong growth visibility.

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