BHELs order intake may remain weak ahead: Kotak Sec

In an interview to CNBC-TV18, Sanjeev Zarbade of Kotak Securities reviewed BHEL’s numbers.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney
moneycontrol.com

Home » News » Earnings » Result Analysis

Feb 01, 2013, 02.06 PM | Source: CNBC-TV18

BHEL's order intake may remain weak ahead: Kotak Sec

In an interview to CNBC-TV18, Sanjeev Zarbade of Kotak Securities reviewed BHEL’s numbers.

Like this story, share it with millions of investors on M3

BHELs order intake may remain weak ahead: Kotak Sec

In an interview to CNBC-TV18, Sanjeev Zarbade of Kotak Securities reviewed BHEL’s numbers.

Post Your Comments

Share Cancel

Sanjeev Zarbade (more)

Analyst, Kotak Securities | Capital Expertise: Equity - Fundamental

In an interview to CNBC-TV18, Sanjeev Zarbade of Kotak Securities reviewed BHEL’s numbers.

Below is the verbatim transcript of an interview aired on CNBC-TV18.

Q: Your take with regards to Bharat Heavy Electricals ’ numbers. It seems like it has disappointed consensus estimate as well.

A: The numbers are disappointing both on the topline as well as the bottomline and even the EBITDA margins are substantially lower. So, while we were expecting a possible disappointment at least on the execution side but the way the EBITDA margins have come at sub 17 percent, definitely, there is significant disappoint in the company.

Also Read: BHEL board declares interim dividend

Q: Even the order book looks quite disappointing at this level. Where do you see the stock head from here? It has already got down to that Rs 220 level. How much more of a pressure do you expect to see?

A: The stock price is the function of the order intake that the company tends to announce. During this quarter i.e. third quarter as well, there has been very low order intake. In the coming months there are couples of orders in which the company is favourably positioned and that may probably provide some kind of support to the stock price. However, in general, we believe that the trend for the stock price at least in the medium-term is on the downward side.

Q: What would you make with regards to the margins because pricing pressure has started showing in terms of margins at this point in time for BHEL. Give us some specifics in terms of how exactly do you expect the margins to progress considering that the order book is declining quite considerably as well?

A: For BHEL, as of now, they would continue to have a negative impact of having much more fixed cost structure. Since the revenue growth is slowing down, it will continue to have a negative impact on the margins. So, that is one concern that we have.

1 2
Buy, Hold, Sell ? Hear it first on M3
BHELs order intake may remain weak ahead: Kotak Sec

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login