February 11, 2017 / 14:39 IST
ICICI Direct's research report on BHEL Bhel reported better-than-expected Q3FY17 results vis-à-vis consensus but lower than our estimates. The beat against consensus was on all accounts (revenue, margins and PAT). Recovery on the power segment EBIT above 10% mark was the key silver lining.
OutlookThough the financial performance may have bottomed out, RoEs may not inch up to the double digit mark in the medium term. Hence, even after valuing the company at average market multiples of 17x on FY18E, the stock is ahead of fundamentals. We maintain HOLD with a target price of Rs 137/share.
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