PN Vijay, Portfolio Manager, www.askpnvijay.com shares his view on BHEL and Ranbaxy Labs.
Vijay told CNBC-TV18, "This quarter I expect BHEL results to be rather modest and not so good for two reasons. One is on project execution costs have still been very high and there have been commissioning delays due to coal linkages and so on, so that is our problem. As you know order books have got really stalled in the power sector due to various policy related issues. BHEL like many of the blue chips, when they were available for a song there is a huge inflow of foreign liquidity that people took up very nice positions, but that story cannot go on forever. So I would be very keenly and a bit anxiously watching BHEL and right now one is in no mood to add to that stock at all."
He further added, " Ranbaxy Labs has been adopting a very international business model and has been investing heavily into the US markets. What the Feds is saying is something rather permanent. It is not just a scuffle, but probably shut Ranbaxy out of very major markets. Retails are still very fuzzy and one needs to go deeper. This is a very danger blow to the company. Also Ranbaxy in terms of valuations is expensive. It's not moved much but even than its expensive compared to pharma stocks in the broad market. So there is absolutely no reason to do any bottom-fishing in Ranbaxy at this point in time."
