BHEL share price: Brokerages see up to 23% upside after Maharatna PSU posts first Q1 profit in 8 years

Bharat Heavy Electricals Limited (BHEL) has delivered a significant turnaround, reporting its first quarterly profit in eight years for the June quarter. This shift from a loss to a profit is a major milestone for the state-owned engineering major. The company has benefited from strong execution on its projects and a robust order book of over Rs 2.6 lakh crore, which provides a strong pipeline of future revenue.

For investors, this development signals a potential shift in the company's financial trajectory. Brokerages have responded positively, with some firms projecting up to 23% upside on the stock. The improvement in margins is a key factor driving this renewed confidence. The stock recently touched a 52-week high, but the fundamental recovery suggests there may be more room for growth.

Moving forward, investors should focus on the sustainability of this profit recovery. It is important to monitor the company's ability to maintain these margins and execute on its large order book. The broader sentiment in the PSU sector and any government policy support will also be critical factors to watch in the coming months.