L&T is a much better bet in the capital goods space, says Phani Sekhar, Fund Manager, Angel Broking.
Sekhar told CNBC-TV18, "The numbers were disappointing and more so the order intake. And as we are expecting they are going to run short by at least 30% in the annual order intake guidance. Going forward also, I don't see a structural improvement in the margins as compared to what they have reported in this quarter. So all in all, BHEL is seeing next 2-3 years in a different way as compared to what it was between 2005 and 2010 and investors must take note of this."
He further added, "In the capital goods space, I believe L&T is a much better bet simply because it's much more diversified than BHEL. Because I see that there is going to be intense competitive intensity in the power equipment space, especially in the heavy engineering power equipment space where BHEL is competing."
