JM Financial recommends buying BHEL, target Rs 358

JM Financial has advised investors to buy shares of Bharat Heavy Electricals (BHEL) with a target price of Rs 358. The current market price for BHEL is Rs 205.45. The recommendation is based on the company’s strong financial performance and the Indian government's commitment to achieving a 500GW power capacity by 2030. BHEL, founded in 1964, is a mid-cap company operating in the engineering sector. It recently reported a consolidated total income of Rs 7,385 crore for the quarter ending December 2024. This marks a 10.3% increase from the previous quarter and a 31.88% increase compared to the same period last year. The company also recorded a net profit of Rs 116.44 crore. The company is involved in various revenue segments, including Erection & Other Services and Scrap. With a market capitalization of Rs 71,518.10 crore, BHEL has a significant presence in the industry. JM Financial believes that the Indian government is dedicated to expanding renewable energy. However, challenges such as land availability, especially in Karnataka, continue to be a concern. The firm expects domestic policies regarding renewable energy to adapt based on global trends over the next few years. As of December 31, 2024, promoters held a 63.17% stake in BHEL, while foreign institutional investors (FIIs) owned 7.98% and domestic institutional investors (DIIs) held 15.39%.