Last few years acted like nightmare for BHEL. The economic
downturn and infiltration of cheap equipment from china dented BHEL dearly.
The slowness in power sector and thanks for environment to
other clearance followed by stretched finance,many power companies stalled
their project. Most of the BHEL contract are from power sector. The huge order
book carry little to no addons as many of them may dent the profitability as
margin of those projects are low.
At the same time, we must recognise that BHEL is trying to
diversify along with more realigned and processed company.
Given more than 15 manufacturing center and all of those
center posses huge real estate which is worth billions of $. Along with that
they have decent cash. Investor should not forget that.
The current market cap of 36 k Cr wherein enterprise price
is 135 indicate the current market price is near to that.
If any investor is really interested in investing with long term horizon may be for 5 to 7 years till the time economy goes
to peak through growth in power,solar and nuclear sector, one may get very good
yield
Please consult your financial advisor before investing.
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