Amisha Vora, Joint MD, Prabhudas Lilladher feels BHEL below Rs 250 looks very difficult, but upside will be also capped for some more time.
Vora told CNBC-TV18, "For a company like BHEL, they have a profit growth of just about less than 3-4%. On that the stock was trading at below 10 multiple which is historically low and the kind of intention and promise to revive this sector which has been given by way of giving the fuel linkage upto 80% to all the plants that are coming up upto FY15, we believe that, that ushers in a ray of hope."
She further added, "What it would rather mean for BHEL is that - not suddenly, in next one year or so their order book will start shooting up, that is going to take little longer or much longer, but the fear of order cancellation will reduce and the rerating to some extent will happen. BHEL below Rs 250 looks very difficult , but upside will be also capped for some more time before the sector starts gathering little more momentum with few more clarifications on SEB front, on case I styles of projects which are still into little trouble. So, all this as they get sorted out the stock will start performing."
