BHEL at Rs 23 After Q1 Results?

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BHEL at Rs 23 After Q1 Results?

By Aditya Raghunath

Investing.com -- Public-sector unit in the power and industry space, Bharat Heavy Electricals Ltd. (NS: BHEL ), announced its results for Q1 FY22. It reported total income of Rs 2,966.77 crore, up 42.19 % from Q1 FY21 when it reported total income of Rs 2086.43 crore. However, sequentially, it was down 59.05%. The company reported net loss of Rs 448.2 crore.

Analysts are not impressed with BHEL at all. The stock closed at Rs 58 on August 4. Analysts have various lower estimates for the stock with the worst one being Rs 23, a downside of over 60% from its current price.

Motilal Oswal Financial Services Ltd (NS: MOFS ) said that BHEL continues to struggle with a weak order environment in the power sector, huge employee cost which accounts for 31% of sales, and high receivables (BHEL is owed almost Rs 31,000 crore by debtors. It added that the company’s execution is not great and its burgeoning working capital requirements make it a poor stock. It has a sell call on BHEL with a target price of Rs 40.

Goldman Sachs (NYSE: GS ) sees the stock sliding to Rs 23. It has a sell call on BHEL. Nirmal Bang Institutional Equities said that it is suspending coverage on the stock because of an unfavourable environment. “With insufficient order placement activity, expected return on equity of 4 per cent in FY23 and a high debtors position – and with unfavourable payment terms, we expect stress to continue on BHEL’s business," Nirmal Bang said.

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  • Sardar Singh @Sardar Singh
    Buy in dip
    Like 1
  • BRIJESH KUMAR @BRIJESH KUMAR
    Superb buy buy & buy in crash
    Like 1
  • Rahul abir boss @Rahul abir boss
    good job
    Like 1
  • Jeet Rajoriya @Jeet Rajoriya
    I have 1000 shares from 67 what i do .?? Should i book loss .??
    Like 10
    • Mayur Garje @Mayur Garje
      long term k liye profit hi hoga 💯
      Like 3
    • Mayur Garje @Mayur Garje
      long term profit
      Like 5
    • Deepanshu Tiwari @Deepanshu Tiwari
      stay long and avoid this short trends ,u will get a reward only in a long run in this company.
      Like 0
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      100
  • arvind bhalsod @arvind bhalsod
    Wah sir
    Like 0
  • prashant hingane @prashant hingane
    Nice
    Like 1
  • Sankalp Vij @Sankalp Vij
    nice explanation
    Like 0

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