BHEL share price down 4% after Q4 losses; Jefferies retains underperform call

Bharat Heavy Electricals (BHEL) share price was down 4 percent in the morning trade on June 15 after the company reported a consolidated net loss of Rs 1,532.18 crore for the March quarter, mainly due to lower revenues and deferred tax.

The stock, which has jumped 40 percent in the last month, was quoting at Rs 30.20, down Rs 1.25, or 3.97 percent at 1000 hours. It has touched an intraday high of Rs 30.60 and an intraday low of Rs 28.45.

It was also one of the most active stocks on NSE in terms of volumes, with 4,49,73,335 shares being traded.

The company posted a consolidated net profit of Rs 680.77 crore in the quarter ended March 2019, it said in a BSE filing on June 13.

Total income in the quarter review stood at Rs 5,193.51 crore, down from Rs 10,489.11 crore in the same period last year.

Global research firm Jefferies has maintained its underperform rating on the stock but raised the target to Rs 20 from Rs 18 per share, according to a report by CNBC-TV18.

The public sector engineering company lost 44 percent revenues due to COVID-19 while receivables are nearly two years of sales, despite the best collection in many years, it said.

The incremental business will offset the slowdown in existing thermal power business with working capital commentary still unfavourable, it added.

According to the research firm, BHEL will generate sub-10 percent RoE in the medium term, with elevated working capital requirements likely to sustain.

For the full fiscal 2019-20, the company suffered a consolidated net loss of Rs 1,468.35 crore. It posted a consolidated net profit of Rs 1,002.42 crore in 2018-19.

Total income decreased to Rs 22,054.31 crore from Rs 31,102.90 crore in the previous fiscal.