Way2Wealth bullish on BHEL, Voltas, BGR Energy

Way2Wealth has come out with its report on capital goods sector. BHEL, Voltas and BGR Energy are top picks in capital goods sector.

BHEL: Robust order backlog at 1580 blns with an as on Q3FY11. Focused approach geared around strong execution, lean manufacturing, cost control measures along with increasing diversification. With measures being taken to beat competition, it remains attractively valued at its CMP of Rs. 2050 per
share.

Voltas: Strong execution in Domestic and International markets in Q4FY11. Engineering Business to deliver good performance with low profit margin jobs being completed. Volume growth in Unitary Cooling products business to be exceptionally strong which should post strong results. We stay positive on Voltas.

BGR Energy: A healthy order book of Rs. 93.17 bln gives a revenue visibility of 1.91x. Emerged from a small BOP player to full fledged EPC player. JV with Hitachi group to set up a 4,000 MW of manufacturing facility each for Boiler & Turbine sets makes it the 3rd player (after BHEL & L&T) to set up domestic facility for the entire BTG package. With the entry into the BTG space, we expect strong prospects for BGR and it remains a value buying opportunity at its CMP of Rs. 469 per share.

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