New Delhi. Experts are divided on the stock market performance of Indian public sector engineering company Bharat Heavy Electricals Limited (BHEL). While some analysts consider it attractive for investment, some are advising to be cautious due to its performance and high competition. In the recent past, this stock has fallen 25% from its 52-week high, which has increased the interest of investors.

Analysts believe that the company may benefit from improvements in government schemes and projects, a strong order book, and improving financial performance. However, increasing competition, high development, and delays in the completion of work may make it challenging.

BHEL's performance highlights
BHEL has secured orders for several large projects in Gujarat, Maharashtra, and Andhra Pradesh. These are expected to lead to revenue growth and improvement in financial performance in the future.

Financial Performance
The company's revenue grew by 28.5% in the second quarter of FY 2024-25. EBITDA showed a margin of 4.2%, recovering from the loss in the same period last year.

Analysts' Opinion
Positive Outlook: Dalal & Broacha and Antique Stock Broking have given BHEL a 'buy' rating. Both brokerages have given it a target price of ₹300 and ₹364 respectively.

Negative outlook: Kotak Institutional Equities has a 'sell' rating and suggests a target price of ₹110. This represents a downside of about 56 percentofm the current price.

Technical analysis
According to analysts at Stocksbox, BHEL has shown a 'double bottom breakout' pattern, which indicates a potential uptrend. Investors are advised to buy it in the short term with a target of ₹ 275 and a stop loss of ₹ 240.

Government Initiatives and Schemes
Steps taken by the government to increase conventional energy capacity can prove to be positive for companies like BHEL.

Advice for investors:
Before investing in BHEL shares, it is important to consider its order book, financial performance, and long-term plans. Take decisions with caution, keeping in mind risks such as increasing competition in the market and high costs.