Should I buy BHEL stock in 2025? Expert Analysis for India

What is BHEL?

How much is BHEL stock?

The price of BHEL stock is rising this week. As of now, BHEL trades at ₹243.78, showing a daily decline of ₹6.57 (-2.62%) but an overall weekly gain of 4.65%. The company's market capitalization stands at ₹84,886 crores, with an average 3-month daily volume of 12.66 million shares. The current P/E ratio is 159.33, dividend yield is 0.10%, and its beta of 2.0 indicates very high volatility. Investors should note BHEL's strong momentum but also be mindful of its elevated volatility in the Indian market context.

Our full analysis on BHEL stock

Having rigorously reviewed BHEL’s latest quarterly and annual financial results, as well as the stock’s notable performance trajectory over the past three years, we have leveraged an integrated suite of financial indicators, technical analytics, and peer benchmarking through our proprietary models. This multifaceted approach delivers a high-confidence perspective on the commercial and operational strengths underpinning the stock. So, why might BHEL stock once again become a strategic entry point into the capital goods and energy infrastructure sector in 2025?

Recent Performance and Market Context

BHEL has exhibited robust upward movement in 2025 following a period of consolidation in 2024. As of May 19, 2025, the stock is trading at ₹243.78, representing weekly and monthly gains of +4.65% and +7.21% respectively. Over the preceding six months, the stock has surged a compelling +24.96%, reflecting renewed investor conviction. While a one-year decline of -21.45% mirrored sectoral volatility amid policy transitions and macro adjustments, the recent positive trend underscores a marked reversal in sentiment.

• Order book expansion: FY25 saw record annual order bookings of ₹92,535 crore, supporting multi-year revenue visibility.
• Dividend reaffirmation: The recommended final dividend of ₹0.50 per share affirms the company’s commitment to shareholder returns, despite a low yield.
• Operational achievements: 8.1 GW of new power generation capacity was commissioned this year, reinforcing BHEL’s industry leadership.

The prevailing macroeconomic context for Indian infrastructure, particularly the government’s strong emphasis on indigenous manufacturing (Make in India), energy security, and a significant pipeline of public capex, provides a distinctly favorable backdrop for BHEL’s growth platform.

Technical Analysis

A focused technical perspective reveals a notably constructive setup for BHEL:

• Momentum signals: The current price stands above all key moving averages—20-day (₹230.39), 50-day (₹216.44), 100-day (₹212.35), and 200-day (₹238.25)—demonstrating sustained accumulation and resilience, even after short-term volatility.
• RSI (14) at 62.1: Suggests positive, but not yet overbought, territory—indicating the potential for continued upward price action without immediate risk of exhaustion.
• MACD (12,26,9) at 2.47: Delivers a bullish crossover, consistent with strengthening momentum.
• Support zones: Crucial technical support lies at ₹240.02, followed by ₹236.27 and ₹229.33, providing relatively close stop-loss benchmarks. Resistance is indicated at ₹250.71, ₹257.65, and ₹261.40—levels that, if breached, could signal a fresh bullish breakout.

While ADX (16.95) reflects a currently weak trend, this typically precedes trending phases—particularly when supported by rising volumes and positive macro news. The overall short-to-medium term structure remains robust, and price action analysis positions BHEL favorably for further gains, especially as the stock navigates above long-term moving averages.

Fundamental Analysis

The fundamental underpinnings of BHEL’s investment case have strengthened meaningfully over the past year:

• Revenue and profit momentum: FY25 full-year revenue expanded 18.6% YoY to ₹28,339.48 crore, while net profit more than doubled (+117.6% YoY) to ₹474.89 crore. The quarterly bottom line rose 4.07% YoY to ₹504.45 crore, highlighting both operating leverage and disciplined cost management.
• Strategic expansion: The company’s record order book of ₹1.96 lakh crore provides multi-year revenue assurance, safeguarding against cyclical swings and strengthening competitive position.
• Valuation: Although BHEL currently trades at a P/E multiple of 159.33 and P/B of 3.20—well above sector averages—these figures must be contextualized against the company’s rapid earnings momentum, strong cash generation, and forward-looking growth guidance. When factoring in the distinctive market positioning and the trajectory of profit recovery, the premium appears increasingly justified.
• Structural strengths: BHEL’s unmatched market share in India, vertically integrated manufacturing network (16 facilities), and diversified presence across Power, Industry, and International segments underpin its durability. Brand cachet and guaranteed public sector project inflows give it a competitive advantage that peers struggle to replicate.

Volume and Liquidity

Trading activity in BHEL presents strong, sustained investor engagement:

• High daily turnover: With a current daily volume of 15.73 million shares—well above the three-month average of 12.66 million—liquidity remains ample. This not only facilitates smooth order execution for institutional and retail participants but underscores persistent market interest.
• Tight float structure: Promoters retain a significant holding (63.17%), further aligning the company’s long-term orientation with investor interests. High trading volumes alongside a controlled float often catalyze sharp re-ratings as new catalysts emerge.

The expansion in daily volumes, set against rising prices and improving fundamentals, signals robust underlying market confidence—favorable dynamics for dynamic valuation adjustments in the quarters ahead.

Catalysts and Positive Outlook

A convergence of fundamental and sectoral drivers points to several powerful catalysts on the horizon for BHEL:

• Renewable energy expansion: BHEL is accelerating its push into solar equipment manufacturing and other clean energy solutions—a core focus area for both central government investment and export orders in the region.
• Government infrastructure thrust: The ongoing public sector capex cycle, targeted at energy security, grid upgrade, and industrial modernization, positions BHEL at the heart of the next wave of infrastructure growth.
• Technological innovation: The company’s growing footprint in high-tech manufacturing and increased R&D outlays fortify its ability to capture future-ready projects, including next-gen turbines and international capacity-building collaborations.
• ESG initiatives: BHEL’s active participation in sustainable engineering and stringent environmental compliance is attracting a new cohort of institutional investors seeking ESG-compliant assets.

These factors, coupled with the solid multi-year order book, suggest that the company may soon enter a period of accelerated earnings growth. Regulatory changes favoring domestic heavy industrials and the gradual normalization of global supply chains add further strength to the bullish thesis.

Investment Strategies

BHEL’s current setup offers compelling entry points for both tactical traders and long-term investors:

• Short-term positioning: With the stock trading just above a significant support bracket (₹240–₹238) and clear resistance levels not far above, there are opportunities for momentum trades, especially as positive news catalysts (such as new project wins or interim results) emerge.
• Medium-term strategies: Accumulation near technical pullbacks—particularly on dips toward the ₹236–₹229 range—could offer attractive risk/reward, especially as new orders are booked and visibility around FY26 earnings improves.
• Long-term allocation: For those seeking multi-year compounding, BHEL’s strategic sector exposure, robust order pipeline, government backing, and commitment to the renewables pivot constitute a formidable suite of growth levers for the coming decade.

Importantly, any positions should consider the share’s inherent volatility, as indicated by its high beta (2.0). However, for investors comfortable with cyclical momentum, such volatility frequently corresponds with sharp, lucrative upward swings at each positive inflection.

Is it the Right Time to Buy BHEL?

Synthesizing the above, BHEL stands at the nexus of multiple powerful tailwinds:

• Strong visible earnings momentum and revenue growth
• Record-breaking order book offering robust forward guidance
• Institutional-grade liquidity and substantial promoter alignment
• Technical structure pointing to a potential renewed rally
• Direct exposure to India’s infrastructure and energy transition megatrends

While headline valuation multiples appear elevated, they reflect renewed confidence in earnings recovery, structural market dominance, and outsized potential for upside surprises. For investors in India seeking large-cap exposure to the country’s ongoing industrial build-out—and with an eye on both cyclical and secular themes—BHEL seems to represent an excellent opportunity within the capital goods and infrastructure universe as we move into 2025.

BHEL’s underlying strengths, current momentum, and imminent sector catalysts combine to make the stock one of the most closely-watched opportunities in the Indian equity landscape. For investors prepared to look beyond short-term volatility, the stock’s positioning offers powerful upside exposure to India’s transformative growth story.

How to buy BHEL stock in India?

Buying BHEL (Bharat Heavy Electricals Limited) stock online is now a simple and secure process, thanks to regulated brokers in India. Investors can easily open an account, deposit funds, and purchase BHEL shares directly from their mobile or computer. There are two main methods to consider: traditional spot buying, where you own the shares outright, and trading through Contracts for Difference (CFDs), which lets you speculate on price movements without owning the stock. Each method has unique advantages, and you’ll find a detailed broker comparison to help you choose further down this page.

Spot Buying

Spot buying involves purchasing BHEL shares directly on the National Stock Exchange (NSE), making you a part-owner of the company. This method is suitable for long-term investors who want to benefit from BHEL’s growth, dividends, and shareholder rights. Typical fees include a flat brokerage commission per order, usually ranging from ₹10 to ₹20, plus minor regulatory levies and GST.

Example

Example with ₹83,000 (approx. $1,000) investment:
If the BHEL share price is ₹243.78, you can buy about 340 shares with a ₹83,000 stake, after factoring in a brokerage fee of around ₹400 (approx. $5) for the transaction.

• Gain scenario:
  If the share price rises by 10%, the value of your holdings becomes ₹91,300—an increase of ₹8,300.
  Result: +10% gross gain on your investment.

Trading via CFD

CFD trading allows you to speculate on the price movements of BHEL shares without owning the underlying stock. CFDs are popular for short-term trading or for those wishing to use leverage, which multiplies your exposure (and risk) for a given investment. Fees for CFDs usually include the bid-ask spread, and a daily overnight financing charge if you hold leveraged positions for more than a day.

Example

Example with ₹83,000 (approx. $1,000) and 5x leverage:
You open a CFD position on BHEL with 5x leverage, giving you exposure of ₹415,000 (approx. $5,000) to the market.

• Gain scenario:
  If the BHEL share price rises by 8%, your position appreciates by 8% × 5 = 40%.
  Result: You earn ₹33,200 (about $400) on your ₹83,000 investment (excluding fees).

Final Advice

Before investing, it’s important to compare the fees, minimums, and conditions of different brokers—each offers various pricing structures and services. Your decision between spot buying and CFD trading should reflect your own objectives: long-term wealth growth, income, or short-term trading opportunities. To help you choose with confidence, a broker comparison tool is provided below so you can find the approach that best suits your needs and goals.

Our 7 tips for buying BHEL stock

The latest news about BHEL

BHEL has reported robust financial performance for Q4 and FY25, exceeding double-digit annual earnings growth. The company’s revenue for Q4 FY25 rose by 8.88% year-on-year to ₹8,993.37 crore, with EBITDA improving 14.3% and net profit rising 4.07%, aligning with analyst expectations. Notably, the full-year results show annual revenue up 18.6% to ₹28,339.48 crore and net profit surging 117.6% to ₹474.89 crore, with EPS almost doubling compared to the previous year. This growth reflects operational improvements and a healthy demand environment in the capital goods and power sector, making BHEL’s trajectory favorable in the short and medium term.

BHEL achieved its highest-ever order booking in FY25, ensuring strong revenue visibility for the future. The company secured new orders valued at ₹92,535 crore during FY25, bringing its total order book to an unprecedented ₹1.96 lakh crore. This provides a significant cushion against short-term market fluctuations and establishes a robust pipeline for project execution. The strength in its order book also indicates sustained demand from the power and infrastructure sectors, buoyed by ongoing government initiatives to upgrade national infrastructure and energy systems in India.

Technical indicators paint a bullish picture, with the stock trading above all key moving averages and healthy momentum readings. BHEL’s current share price of ₹243.78 is comfortably above its 20-, 50-, 100-, and 200-day simple moving averages, signaling upward momentum. The RSI stands at a mid-range 62.1, supported by a bullish MACD and a trading volume markedly above its three-month average, pointing toward sustained investor interest. These factors underscore a positive technical outlook and ongoing market confidence in BHEL’s prospects amid favorable sector dynamics.

The board’s recommendation of a final dividend and improving profitability mark a shareholder-friendly approach and business resilience. BHEL’s board has proposed a final dividend of ₹0.50 per share for FY25, reflecting the company’s improved financial health and commitment to shareholder returns, even as it maintains operational rigor and capital discipline. This comes alongside solid earnings growth, demonstrating management’s confidence in the company’s cash flows and ongoing ability to deliver value to investors, particularly those with a long-term focus.

BHEL’s position is reinforced by government backing, market leadership, and a clear strategy toward renewable energy and infrastructure growth. As India’s largest engineering and manufacturing enterprise in the energy and infrastructure segments, and with the Government of India holding a dominant stake, BHEL benefits from policy support and preferential access to major projects. Its strategic move to expand into renewable energy, especially solar equipment manufacturing, aligns with national priorities on energy security and sustainability, positioning it to capture emerging opportunities and enhance long-term growth potential within the Indian market.

FAQ

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.