Buy BHEL around Rs 210, says SP Tulsian

SP Tulsian, sptulsian.com advises traders to buy BHEL around Rs 210.

Tulsian told CNBC-TV18, “Last time BHEL corrected to about Rs 200-205, I said that it is a good buy because I don’t think that stock can really fall below that. I agree that the Q3 numbers have really been quite dull and poor, but Q4 is really very critical for the company and even if you see the bad numbers, broadly it has seen getting factored into the price and now the share is virtually ruling closer to may be the single digit or sub 10 price to earnings (PE) multiple.”
He further added, “Once it corrects to about Rs 210, target of Rs 200 is possible may be in next couple of months, but whenever it touches to the level of Rs 210 I will again advice to initiate a buy call because last time also when the share fell to Rs 205-210 then thereafter it moved to Rs 265-270 in the next two, three months only. At that time the situation was again the same, sell call from all the top brokerage houses, investment bankers and all sorts of things, so, again same view. I am not writing it off this company because definitely the investment cycle is quite poor in the country. You don’t have the new orders coming in and that is a real problem for the company. I don’t think that on the pending order front there are any kinds of concerns. They have one lakh thirty thousand crore orders, but the fresh orders are not coming in, so that broadly seems to have reflected into the price.”