Brokerages bearish on BHEL, cut target post poor Q1 nos

Brokerages remain bearish on Bharat Heavy Electricals (BHEL) on the back of poor April-June quarter earnings. Shares of state-owned capital goods major tanked 11.6 percent in early trade Monday to touch more than 7.5 year-low of Rs 132, after it reported a dismal performance on every parameter during April-June quarter.

The first quarter standalone of BHEL halved to Rs 465.4 crore from Rs 920.9 crore in a year ago period, dented by net profit weak power segment performance, despite higher other income.

Net sales dropped 23.7 percent to Rs 6,352.5 crore in April-June quarter from Rs 8,326.2 crore in corresponding quarter of last fiscal.

Here is what brokerages tell you how to trade the stock now:

JP Morgan
Maintain Underweight
Target price cut to Rs 145/share from Rs 180/share

Goldman Sachs
Maintain Sell
Target price cut to Rs 136/share from Rs 165/share

Bofa ML
Maintain Underperform
Target price cut to Rs 143/share from Rs 174/share

Citi
Maintain Sell
Target price cut to  Rs 140/share from Rs 185/share

Barclays
Maintain Underweight
Target price cut to Rs 148/share from Rs 195/share

Deutsche Bank
Downgrade to Sell from Hold
Target price cut to Rs 126/share from Rs 169/share

Credit Suisse
Maintain Underperform
Target price Rs 164/share

UBS
Maintain Buy
Target price Rs 285/share

Morgan Stanley
Maintain Underweight
Target price Rs 184/share

Nomura
Maintain Reduce
Target 185/share

CLSA
Downgrade to Sell from underperform
Target price cut to Rs 130/share from Rs 195/share

Edelweiss
Downgrade to Reduce from Hold
Target Price cut to Rs 105/share from Rs 195/share