Go long in BHEL: A Chakraborty

Abhijit Chakraborty of Edelweiss Capital is of the view that one can go long in BHEL.

Chakraborty told CNBC-TV18, "I would be more positive on going long on BHEL because of the fact that the stock has seen an extreme amount of correction and fundamentals do not warrant this kind of correction because the company sitting on almost close to four years of order book and there is no slowdown in the accession of their order book. Unlike some of the other infrastructure companies who are dependent or squeezed because of the tight monetary conditions in economy and high interest rate; companies like BHEL who are cash generating companies and has a huge amount of cash on the balance sheet; they do not have any funding requirement. So there is going to be a margin squeeze but it’s going to be limited to the extent of increase in input cost, which is more than factored in at the current valuations. So I would be comfortable going long on BHEL."

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