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BHEL is Undervalued - Sitting On Huge Real Estate

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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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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