Sell BHEL, advises Tirthankar Patnaik

Tirthankar Patnaik of Religare Capital Markets told CNBC-TV18, "We have been bearish on Bharat Heavy Electricals (BHEL) for the last three years at least largely on business fundamentals getting more inimical to the company's environment. So to be honest we are also surprised by the stock's sharp movement over the last couple of weeks. Part of it could be that the stock was extremely cheap at double digit levels but we continue to believe that these business fundamentals are unlikely to change over the next couple of years at least."

"Order book growth is likely to remain negative over the next one-two years which would impact margins as well as earnings performance over the next two years. So we would remain sellers of the stock even at these levels," he said. At 11:38 hrs Bharat Heavy Electricals was quoting at Rs 146.85, down Rs 3.55, or 2.36 percent. It has touched an intraday high of Rs 149.50 and an intraday low of Rs 145.80. The share touched its 52-week high Rs 272.45 and 52-week low Rs 100.35 on 05 October, 2012 and 20 August, 2013, respectively. Currently, it is trading 46.1 percent below its 52-week high and 46.34 percent above its 52-week low. Market capitalisation stands at Rs 35,943.01 crore.