BHEL Stock: Investec, Kotak Project Significant Downside Post Q3 Results

• Investec maintains a 'sell' rating on BHEL with a ₹70 price target, projecting a 74% downside due to supply chain challenges and vendor exits.
• Kotak Institutional Equities also has a 'sell' rating, setting a ₹120 price target, implying a 55% downside, citing lower execution pace and increased costs.
• Kotak cut BHEL's EPS estimates for FY28 by 15% and noted high inventory levels posing risks to other income sustainability.
• JPMorgan highlighted BHEL's weak average EBITDA margin of 2.1% over FY14-25 and cautioned on unprofitable execution despite new orders.
• Nuvama, a bull on BHEL, maintains a 'buy' rating with a ₹353 price target, anticipating a turnaround in FY27 after legacy drags.

Why It Matters: Brokerage firms Investec and Kotak project significant downside for BHEL stock post Q3 results, citing execution and margin concerns.