How Do Coal Gasification Orders Strengthen BHEL’s Earnings Visibility?
UBS View on BHEL
UBS has reiterated its Buy rating on BHEL with a target price of ₹375. The brokerage highlights recent wins worth ₹5,400 crore in coal gasification and raw syngas cleaning plants, taking FY26 order coverage to around 60 percent.
The order awarded by BCGCL, a joint venture of Coal India and BHEL, marks the first commercial deployment of BHEL’s proprietary pressurised fluidised bed gasification technology.
Key Positives
🔹 Transition from R&D to commercial execution.
🔹 42-month execution and 60-month O&M visibility.
🔹 Strong order inflow momentum.
UBS views these developments as a positive read-through following the recent stock correction, reinforcing confidence in BHEL’s medium-term earnings trajectory.
Investors positioning around PSU industrial themes may consider a Nifty Intraday Tip framework to navigate volatility.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes that BHEL’s move from technology development to execution is a key inflection point. Large, long-duration orders provide earnings visibility and strategic relevance in India’s energy transition. More PSU insights are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services











