SBI shares declined by 1.2 percent on Friday. The banking major faced rejection at higher levels (around Rs 820) and technical charts suggest weakness. Overall positive market sentiment could change the short term trend for SBI to positive. BHEL was among major losers on Friday with stock closing 4.5 percent lower. The stock has declined 10 percent over last one month. Tata Steel has also witnessed selling at higher levels. Tata Steel faces resistance around Rs 165 and a positive close above this level could push it to fresh yearly highs. TopNews Team has reviewed technical levels for these stocks for short term investors and traders.

Bharat Heavy Electricals Limited (BHEL): Strategies and Stiffening Competition

BHEL finds itself in a period marked by pronounced volatility. On July 25, 2025, the company’s share price registered ₹240.15, reflecting a 4.35% daily drop and 8.29% loss over the month. Although the stock is up 8% over the past quarter, it remains nearly 23% below last year’s level and nearly 27% off its 52-week high of ₹327.

A pivotal event shaping this performance was BHEL clinching a ₹6,500 crore contract from Adani Power, an order that initially rallied the stock by 3%. Yet, subsequent selloffs highlight underlying fragility amid sector headwinds and profit-booking. The critical turning point, however, has been the government’s revision of emission norms—particularly surrounding Flue Gas Desulphurisation (FGD) installation mandates. With NTPC pausing FGD projects at five plants, about 7GW of expected orders vanished from BHEL’s pipeline, disrupting a major growth lever.

Simultaneously, competitive heat is ramping up. The entry of Larsen & Toubro (L&T) into thermal power equipment threatens BHEL’s dominant industry position and future earnings, injecting further uncertainty.

Financially, BHEL’s recent momentum is mixed. The December 2024 quarter saw revenue soar 32% YoY, but EBITDA margin growth failed to keep pace due to elevated expenses. Order inflows surged an impressive 167% to ₹6,860 crore, expanding the order book to a robust ₹1.6 lakh crore. This pipeline provides an operational cushion, but questions linger over profitability.

Such ambiguity is mirrored in the analyst community. Of 19 leading analysts, just 7 signal a ‘Buy’ (including ‘Strong Buy’), while 8 rate as ‘Sell’ or ‘Strong Sell.’ Morgan Stanley remains bullish (Overweight, ₹352 target), citing top-line and profit outperformance. By contrast, CLSA issues caution (Reduce, ₹166 target), pointing to demanding valuations, competitive erosion, and earnings risk. Nuvama, on the other hand, maintains optimism (Buy, ₹360), banking on sectoral tailwinds and the springboard of a robust order book. Ultimately, the consensus hangs in the balance: sustained inflows and cost discipline could drive returns, but execution and competitive threats must be watched closely.

Tata Steel Ltd.: Navigating Cycles, Capex, and Global Trade Jitters

Tata Steel, as of July 25, 2025, trades at ₹161.4 per share with a mammoth market capitalization of ₹201,522 crore. The current one-year decline of 9.43% belies the company’s longer-term ambitions, as it launches one of its most sweeping cost-reduction and capacity expansion drives.

The global landscape continues to buffet Tata Steel. Most notably, the U.S. government’s 50% import tariff (announced June 2) sparked a 2.5% slide in shares, reflecting fears of dampened export volumes and squeezed margin for multi-national players.

Despite this, Tata Steel’s corporate actions exude confidence. An ₹11,500 crore cost-saving initiative and a ₹3.60 per share dividend—both effective in June—underscore the company’s focus on efficiency and shareholder returns. A further ₹15,000 crore capex allocation for FY26, largely directed at scaling and modernizing the flagship Kalinganagar plant, highlights a commitment to boosting annual output to 26.6 million tonnes.

Internationally, restructuring in the UK and Netherlands is underway—targeting 1,600 job cuts and more than €500 million in operational savings for FY26. These moves are anticipated to enhance EBITDA per tonne and overall profitability, with visible benefits expected as early as next fiscal.

Still, challenges persist. Tariff overhangs, sluggish global demand (particularly if China’s economy stumbles), and execution risks in European restructuring loom large. The company’s operating efficiency and ability to weather cyclical downturns will be under scrutiny.

Analyst sentiment tilts positive in the medium term. Jefferies recently upgraded Tata Steel, targeting ₹200 per share on the back of supportive government policy and promising demand recovery. Consensus targets for 2025 hover in the ₹190–211 range, with long-range bullishness seeing potential for ₹400+ by 2030 should expansion strategies deliver. Financially, while cash-flow discipline remains strong, profit growth between FY22–FY25 fell 34.46% amid price headwinds, highlighting the cyclical nature of the steel sector.

State Bank of India (SBI): Leadership, Latent Value, and Resilience in Focus

SBI’s market stature as of July 25 is formidable, with shares at ₹806.55. While returns over the last 12 months are mildly negative (–4.94%), the stock has delivered a robust 56% gain over three years.

The narrative around SBI is defined by relentless improvement in asset quality—gross NPA at 1.82% and net NPA falling to 0.47%, reflecting industry-leading risk management. Operating metrics continue to improve, with net profit per employee rising 14.15% YoY. Notably, the latent value embedded in SBI’s stakes in Yes Bank and the National Stock Exchange remains largely unaccounted for in analysts’ core valuations, providing stealth upside.

Still, the stock is not immune to technical and macro headwinds. A recent stochastic “sell” crossover has historically heralded short-term corrections (average seven-week decline of –5.91%). Meanwhile, there are concerns about near-term compression in net interest margins as India enters a lower-rate regime, even as loan growth is forecast to pick up gradually.

Broker outlook is resoundingly bullish. ICICI Securities sets a strong buy with a ₹950 target, lauding SBI’s sector leadership. Motilal Oswal joins with a ₹925 target and positive bias for the coming year. CLSA takes a highly optimistic stance (Outperform, ₹1,050), emphasizing both core franchise strength and unrecognized investment value. Across 37 covering analysts, an overwhelming 30 rate SBI as a buy, cementing its reputation as the market’s favored large-cap financial for FY25–26.

Comparative Table: Analyst Outlook, Key Catalysts, and Risks (July 2025)

Actionable Takeaways for Investors

BHEL sits at a strategic inflection point: the sustainability of recent order wins and future margin management will determine whether the company can defend its market share amid heightened competition. Tata Steel’s trajectory hinges on executing massive cost and capacity improvement plans while adapting swiftly to changing global trade winds and navigating structural overhauls in Europe. SBI, already a market darling, offers a compelling blend of operational strength and latent portfolio value, and is well-positioned to lead if India’s interest rate cycle bottoms out and credit growth revives.