Analysts are bullish on Bharat Heavy Electricals (BHEL) on the company's increased order inflow in thermal power projects and opportunities in other sectors.

What Happened: BHEL recently received an ₹6,100 crore order from NTPC to develop the 1600-megawatt thermal power project at Sipat. 

In August, the company also won a ₹11,000 crore order from Adani Power to develop three supercritical thermal power projects in Kawai, Rajasthan and Mahan, Madhya Pradesh.

Brokerage Views: ICICI Securities retained its "buy" call and kept their target price at ₹370, indicating an upside of 39% from the previous closing price. The brokerage sees continued demand for thermal power projects in India. BHEL has an order inflow of ₹34,100 crore in FY25 to date and is the lowest bidder for another ₹21,000 crore project, it noted.

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The research firm expects BHEL to have an order inflow of ₹80,000 crore in FY25. ICICI also said BHEL is diversifying its order book and recently won a ₹23,500 crore contract from Titagarh Rail Systems order to supply 80 Vande Bharat trainsets and service them for 35 years. The brokerage expects BHEL to gain experience from the project and attract more Vande Bharat projects.

Antique also maintained a "buy" with a target price of ₹361. The research firm sees the ordering momentum for BHEL to continue due to large order pipeline in the power sector along with robust business opportunities in sectors such as railways, defence and renewable energy.

Antique sees cumulative order inflow of ₹2.2 lakh crore over FY24 to FY26 along with execution of existing order book of ₹1.5 lakh crore, which will gave the company a 156% earnings annual growth over FY24-27.

Price Action: Shares of BHEL were up 2.61% to ₹273.10 on Monday.

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