While UBS remains constructive on the company’s order inflow prospects across the thermal power and industrial segments, it believes the risk-reward profile has become more balanced after a significant expansion in the order book.
The brokerage expects BHEL to secure new orders worth ₹1.36 lakh crore during FY27 and FY28, which should support steady growth in its order backlog.
Despite the rating downgrade, UBS said the Street is still underestimating BHEL’s earnings growth potential.Reflecting improved earnings visibility and a sustained ordering environment, the brokerage raised its valuation multiple to 28 times from 25 times and increased its FY27 and FY28 earnings estimates by 1%-3%.
Separately, BHEL has secured a refinery-related contract in Nigeria valued at approximately ₹2,000-2,500 crore.
The company said it signed a contract agreement on June 2 for the design, manufacturing, supply, and supervision of erection and commissioning of eight gas turbine generator packages for a petroleum refinery and polypropylene plant located in the Dangote Industries Free Zone in Nigeria.
The project is scheduled to be completed within 26 months from the effective date of the contract.
BHEL shares ended Wednesday’s session 1.4% lower at ₹405. The stock has gained about 40% so far in 2026.
