<ul><li>Bharat Heavy Electricals Ltd. (BHEL) has won a major order in India's thermal power sector, securing a 16% inflow of NTPC's tender for the current fiscal.</li><li>CLSA, while raising its target price on BHEL, remains cautious and maintains an 'underperform' rating due to valuation concerns.</li><li>Despite the uptick in orders, BHEL's current valuation is viewed as overpriced, trading at a steep 40 times its estimated earnings per share for fiscal 2026.</li><li>CLSA highlights the highly competitive nature of BHEL's diversified sectors (such as defence, railways, and coal gasification) and the potential challenge from rival Larsen & Toubro Ltd. in thermal power equipment.</li></ul>

Why CLSA Is Cautious On Bharat Heavy Electricals Despite Thermal Power Project Win

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