Hold BHEL, target of Rs 1550: Sharekhan
April 6th, 2009
Sharekhan has downgraded its rating on Bharat Heavy Electricals (BHEL) to hold with a target price of Rs 1550 in its April 2, 2009 research report.
“Bharat Heavy Electricals Ltd (BHEL)’s FY2008-09 provisional numbers were in line with our expectations. The company reported a 27.9% year-on-year (y-o-y) growth in its turnover to Rs 27,505 crore. The profit before tax (PBT) was up 2.3% year on year (yoy) to Rs 4,530 crore. The profit after tax (PAT) grew by 8.8% to Rs 3,039 crore as against our expectation of Rs 3,025 crore. Our fair value works out to Rs 1,550 (15x FY2011E). As the current market price is closer to our price target we are downgrading the stock to ‘Hold’,” says Sharekhan’s research report.