172@29@17@242!~!172@29@0@53!~!|news|business|stocks|hold-bhel-target-of-rs-34-prabhudas-lilladher-2-5835791.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Sep 14, 2020 12:29 PM IST | Source: Moneycontrol.com

Hold BHEL; target of Rs 34: Prabhudas Lilladher

Prabhudas Lilladher recommended Hold rating on BHEL with a target price of Rs 34 in its research report dated September 12, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on BHEL


BHEL reported weak performance for the quarter wherein both segments Power/Industry revenue de-grew by 68%15% YoY. During the quarter order inflows de-grew by 62% YoY led by delay in ordering activity, deferment due to Covid-19 pandemic and overall stress in power sector. Order backlog stands at Rs1.08trn, flat YoY (executable OB ~Rs880bn) providing revenue visibility going ahead. Despite weak 1Q performance, the company witnessed some improvement in terms of debtors (down by 7%), rise in cash collection to billing ratio and lower other expense. Going ahead, they would continue to focus on cash collection, execution and high margins projects (venturing into new segments such Aerospace, Defence, Railways,etc).


Outlook


Execution challenges and high level of receivables remain key concerns that could possibly hamper medium term growth prospects. BHEL’s transformation strategy to optimize operational cost and initiatives like utilization of manufacturing facilities & industrial land will likely help diversify in non-power business and aid long term revenue visibility. We maintain Hold on the stock with TP of Rs34.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Sep 14, 2020 12:29 pm
Sections