Synopsis: Bharat Heavy Electricals Ltd (BHEL) is poised to announce its financial results for the quarter ending December 31, 2024. Analysts forecast significant year-over-year (YoY) and quarter-over-quarter (QoQ) growth in revenue and net profit, driven by robust order inflows and enhanced execution capabilities.
Kotak Institutional Equities anticipates BHEL's net sales to reach ₹6,785.9 crore, marking a 23.3% YoY and 3.1% QoQ increase.
The firm projects EBITDA at ₹423.2 crore, reflecting a 95.4% YoY and 53.9% QoQ rise, with margins expanding over 200 bps to 6.2%.
Net profit is expected to be ₹189.3 crore, a 62.3% YoY and 95.8% QoQ surge.
Kotak maintains a 'sell' rating with a target price of ₹110 per share.
JM Financial estimates net sales of ₹6,617.5 crore, up 25% YoY and flat sequentially.
EBITDA is projected at ₹304.2 crore, up 40% YoY and 11% QoQ, with margins improving by 40 bps to 4.6%.
The firm forecasts a net profit of ₹145 crore, a 140% YoY and 37% QoQ increase, and holds a 'buy' rating on the stock.
Antique Stock Broking forecasts sales of ₹6,997.9 crore, a 27% YoY and 6% QoQ rise.
EBITDA is expected at ₹349.9 crore, up 62% YoY and 27% QoQ.
Net profit is projected at ₹158 crore, a 241% YoY and 63% QoQ surge.
Antique maintains a 'buy' rating with a target price of ₹364, citing BHEL as a top pick in the industrial sector.
Market Performance:
On Tuesday, BHEL's shares declined over 2% to ₹190, bringing its market capitalization below ₹66,500 crore.
The stock had closed at ₹194.35 in the previous session and has fallen more than 43% from its 52-week high of ₹335.40 in July 2024.
Conclusion:
Analysts are optimistic about BHEL's Q3 FY2024-25 performance, expecting substantial improvements in revenue and profitability due to a strong order book and effective execution.
However, the extent of margin expansion remains a point of debate.
Investors should closely monitor management's insights on order book status, execution plans, and sectoral contributions to assess the company's future growth trajectory.
