BGR Energy may slip to Rs 210- 215, says SP Tulsian, sptulsian.com.
Tulsian told CNBC-TV18, "The delay in the NTPC order is quite negative. Firstly from NTPC point of view the generation capacity which they have been talking of that they will be able to ramp it up from 32,000 megawatt to 50,000 megawatt will get delayed. If you take the case in reference to the BGR already we have seen 33% drop yesterday in the results posted by the company in top-line as well as bottom-line. EPS for the quarter was less than Rs 8 which was Rs 12 in the corresponding quarter and with this kind of order going away from the company even it is it delayed generally they are all long gestation orders."
He further added, "All these orders otherwise also has to get executed within a period of 24 to 36 months. Even if it gets delayed by next 4 to 6 months the two quarter results is likely to get affected so I won't be surprised to see BGR Energy correcting further about Rs 210 to Rs 215 because the stock has risen in line with all other capital goods stocks like ABB, BHEL, Siemens. L&T so even this stock has risen quite a lot so probably still some correction in case of BGR can be seen to the extent of Rs 15 to Rs 20."
