Don't see bullet train as re-rating trigger for BHEL: Kotak Securities

State-run power equipment maker Bharat Heavy Electricals (BHEL) fell 3 percent as analysts retained their negative stance on the company despite bullet train contract.

In an interview to CNBC-TV18, Deepak Agarwala of Elara Capital and Sanjeev Zarbade, Analyst at Kotak Securities spoke about the impact of the Mumbai-Ahmedabad bullet train orders on BHEL and a few individual stocks.

"We have been negative on BHEL. We don’t see significant uptick in power segment," said Zarbade,.

He expects Rs 3,000 crore worth of ordering in FY20-22 for BHEL.

According to him, bullet train is a very minor opportunity for the company and he doesn't see bullet train as a re-rating trigger.

Watch | India's Bullet Train Ambitions

It is going to take several years before bullet train project kicks off, said Agarwala of Elara.

Zarbade expects Rs 9,000-10,000 crore worth of orders for L&T consortium. Larsen and Toubro (L&T) is a buy on decline with a target price of Rs 1274, he advises.

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