Bharat Heavy Electricals Limited (BHEL.BO) stock analysis

In our weekly check, Bharat Heavy Electricals Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 5.

About Bharat Heavy Electricals Limited

Bharat Heavy Electricals Limited is an Industrials company (Industrial - Machinery) based in India, listed on BSE as BHEL.BO.

What our checks show for BHEL.BO

Red flags

• The gross margin fell by 3.1 points, to 23.5%: costs are rising faster than prices.
• Profits not backed by cash
• The stock has fallen as much as 95% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.8 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin is only 7.6%: little room if costs rise.
• Free cash flow is only 0% of revenue.
• The price swings a lot: 38.4% annual volatility. Expect large ups and downs.
• Return on capital (ROCE) is only 7.5%.

Strengths

• Debt is low: 0.22x equity.
• The net margin rose by 5.4 points over 5 years, to 7.6%.
• Analysts expect earnings per share to grow about 37.8% a year over the next years.
• Analysts expect revenue to grow about 21.8% a year over the next years.
• Analysts expect the net margin to improve by 2.7 points from today's 7.6%.
• Revenue grew 19.5% a year over the last 3 years.

Similar companies

ABB.NS · CUMMINSIND.NS · SIEMENS.NS · 6841.T · 6361.T · 6645.T

Questions

What grade does Bharat Heavy Electricals Limited (BHEL.BO) have?

In our weekly check, Bharat Heavy Electricals Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BHEL.BO stock?

This week's biggest flags for Bharat Heavy Electricals Limited: Gross margin falling, Profits not backed by cash, Deep past fall. In total 9 of 24 checks show a warning or a red flag.

What does Bharat Heavy Electricals Limited do?

Bharat Heavy Electricals Limited is an Industrials company (Industrial - Machinery) based in India, listed on BSE as BHEL.BO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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