BHEL Shares Plunge: Brokerages Warn of Up to 73% Drop, Citing Fundamental Challenges

• Investec recommends 'Sell' on BHEL shares with a target price of Rs 70, predicting a 73-74% fall.
• Kotak Institutional Equities also has a 'Sell' rating, setting a target price of Rs 120, indicating a 55% potential drop.
• Concerns include weak order flow impacting suppliers, BHEL stopping in-house manufacturing, and slow execution pace.
• JP Morgan highlights BHEL's weak average EBITDA margin (2.1% between FY2014-FY2025) and difficult payment terms.
• Nuvama maintains a 'Buy' rating with a target of Rs 353, expecting a turnaround in FY2027 due to operating leverage.

Why It Matters: Brokerages issue strong 'Sell' warnings for BHEL shares, citing deep-rooted operational and financial issues.