Sell BHEL, target of Rs 132: Abhineet Anand

Abhineet Anand of Quant Capital told CNBC-TV18, \\"When you see the revenue in Q2 or Q3; Q3 and Q4 are going to be still bad because Bharat Heavy Electricals (BHEL) had taken orders two-three years back, operating leverage is not happening because revenues have shrunk significantly. What has happened is basically investors are looking for the P/E re-rating, which has already happened across all the capital good stocks. So from lows of Rs 100-110 to around Rs 150 now, it has appreciated a lot.\\"

\\"We remain sell because BHEL generally takes boiler-turbine-generator (BTG) orders, which are long gestation orders. So even though we have an investment pickup that happens in Q2 or Q3 FY15 and not before, getting orders and then converting into revenues will be in FY16 or later. So I don't think investors can keep on waiting for four more bad quarter numbers and then you have a similarly high EPS after that. Our target is Rs 132,” he added.