BHEL may fall to Rs 125: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "In Bharat Heavy Electricals (BHEL) the disappointment is largely on the advance tax payment. They have paid Rs 620 crore that translates exactly 25 percent lower. If you see their FY13 tax amount, it works out to at Rs 2,800 crore and if you make the backward calculation this being the 30 percent installment. The second installment is of 30 percent for corporate and Rs 620 crore works out with Rs 2,100 crore that means they are estimating the tax liability at Rs 2,100 crore. So obviously you are expecting they are into 30 percent tax bracket.”

He further added, “The market is expecting that maybe the results which have seen to be quite dull in Q1 largely because of the order inflow, probably the same trend may continue for Q2 and Q3 also. In Q4 we always see the better numbers coming in for the company.”
“If you see the run up Rs 145 has seem to be a very strong resistance, in fact the stock has moved from Rs 100 to Rs 145 in this last one month and probably because that has seen as a technical resistance and yesterday’s news of advance tax payment lower, the thought has made the people to think why not go for the profit booking.”
“One may look at a lower level of Rs 120-125 because that kind of price behaviour you see very often or quickly coming in into the stock. So probably the delivery based profit booking is likely to continue and I am expecting that the stock would fall to a level of Rs 125 where the renewed buying may start coming in.”