Hold BHEL; target Rs 134: Firstcall Research
Brokerage house Firstcall Research has recommended hold rating on Bharat Heavy Electricals (BHEL) with a target price of Rs 134, in its September 02, 2013 research report.
September 05, 2013 / 12:59 IST
Firstcall's research report on Bharat Heavy Electricals (BHEL)
Bharat Heavy Electricals (BHEL) net profit falls to Rs.4654.30 million against Rs.9209.00 million in the corresponding quarter ending of previous year, a decrease of 49.46 percent. Revenue for the quarter declines by 23.47 percent to Rs. 64581.20 million from Rs.84390.10 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.90 a share during the quarter, registering 89.89 percent decrease over previous year period. Profit before interest, depreciation and tax is Rs.9270.60 millions as against Rs.15684.60 millions in the corresponding period of the previous year.Outlook and Conclusion: At the current market price of Rs.120.00, the stock P/E ratio is at 4.97 x FY14E and 4.75 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.24.13 and Rs.25.25 respectively. On the basis of EV/EBITDA, the stock trades at 2.30 x for FY14E and 2.10 x for FY15E. Price to Book Value of the stock is expected to be at 0.81 x and 0.69 x respectively for FY14E and FY15E. We recommend 'HOLD' in this particular scrip with a target price of Rs 134 for Medium to Long term investment," says Firstcall Research report. 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. 
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