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BHEL share price plunges 18% post Q4 earnings; brokerages maintain 'sell'

There were pending sell orders of 80,675 shares, with no buyers available.

June 14, 2021 / 10:18 AM IST
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Bharat Heavy Electricals (BHEL) share price fell 18 percent intraday on June 14 after the company announced its March quarter earnings.

There were pending sell orders of 80,675 shares, with no buyers available.

The company's consolidated net loss narrowed to Rs 1,036.32 crore in the March 2021 quarter against a net loss of Rs 1,532.18 crore in the year-ago period.

Total income during January-March 2021 rose to Rs 7,245.16 crore, from Rs 5,166.64 crore in the year-ago period.

Here is what brokerages have to say about the stock and the company after the March quarter earnings:


CLSA | Rating: Sell | Target: Rs 40

The Q4 was weak with its execution. It cleaned up its balance sheet with Rs 1,800 crore in provisions, whether this is a precursor to divestment remains to be seen.

CLSA cut FY22 EPS estimate by 7% to factor in weak discom financials.

Kotak Institutional Equities | Rating: Sell | Target: Rs 34

The company reported weak results on execution, gross margin & working capital. The weak gross margin casts doubts on its ability to report topline high enough to cover fixed costs.

Goldman Sachs | Rating: Sell | Target: Rs 23

The company delivered a disappointing quarter. The reported losses were significant at Rs 1,000 crore, even adjusting for one-time provisions, PAT would have been at Rs 400 crore.

Goldman Sachs expect even FY22 to generate no profit and the company does not warrant the current high multiple.

At 09:47 hrs, Bharat Heavy Electricals was quoting at Rs 63.40, down Rs 12.80, or 16.80 percent on the BSE.

The share touched a 52-week high of Rs 79.50 and a 52-week low of Rs 26.40 on 09 June, 2021 and 04 June, 2020, respectively.

Currently, it is trading 20.25 percent below its 52-week high and 140.15 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Jun 14, 2021 10:08 am

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