Hold BHEL for long term: Rajesh Agarwal

Hold BHEL for long term, says Rajesh Agarwal, Head - Research, Eastern Financiers.

Agarwal told CNBC-TV18, "If one is a long term investor I would suggest holding on BHEL because there is a overhang in the near future because we have seen with whatever the company has come out with the FPO the overhang continues to be there till such time the FPO gets over because there are lot of concerns on the pricing issue."
He further added, "The government dilution is there, they are all coming out with new shares or something like that. Unless it becomes clear these concerns are always there. But as far as BHEL is concerned long term prospects remain quite good. If you look at the order book 1,64,000 crore order book as on March, it is quite impressive and it gives a revenue visibility for at least 2-3 years down the line."
"I find the stock to be very attractive, maybe Rs 2300-2350 in the next one year is quite possible. But I would like to add, in the short term the FPO overhang is going to continue and the stock is going to languish in this range only. One has to wait for at least 3-4 quarters to get a price target of Rs 2350."