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Last Updated : Feb 12, 2020 10:01 AM IST | Source:

BHEL share price hits 52-week low post Q3 show; Jefferies cut target

Revenue declined 22.6 percent to Rs 5,679.3 crore versus Rs 7,336.4 crore, YoY.

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Bharat Heavy Electricals (BHEL) share price touched its 52-week low of Rs 37.50, falling more than 4 percent in early trade on February 12 after the company posted a weak set of numbers for Q3FY20.

The company's Q3 profit fell 17.3 percent to Rs 158.8 crore against Rs 192 crore in the same quarter last year.

Revenue declined 22.6 percent to Rs 5,679.3 crore versus Rs 7,336.4 crore YoY.


Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 50.3 percent at Rs 328 crore, while margin was up 280 bps at 5.8 percent YoY.

Morgan Stanley | Rating: Underweight | Target: Rs 37 per share

The company's EBITDA growth is 22 percent below consensus and 20 percent below our estimate, said Morgan Stanley.

The profit was 32 percent below consensus and 30 percent below their estimate.

The slower execution could be due to delayed receivables, it added.

Jefferies | Rating: Underperform | Target: Cut to Rs 33 from Rs 37 per share

The margin offsets the revenue decline impact. The Q3 EBITDA was in-line with expectations after several quarters of disappointment, said Jefferies.

The 20 percent revenue decline could be made up in Q4.

It believes generation capex will remain muted due to overcapacity.

At 09:22 hrs, Bharat Heavy Electricals was quoting at Rs 37.70, down Rs 0.85, or 2.20 percent on the BSE.

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First Published on Feb 12, 2020 10:01 am
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