Bharat Heavy Electricals (BHEL) share price plunged 9.5 percent intraday on July 14 after research house Citi has downgraded the stock to 'sell'.
Research house Citi has downgraded the stock to 'sell' from 'neutral' with a target of Rs 34 per share.
According to Citi, after a recent rally, the company is trading at 0.5x P/BV. The valuation is unappealing given 4 percent RoE & risks to cash flows & profits.
The high receivables continue to pressure the cash flows, while success in new areas will take time, reported CNBC-TV18.
At 09:31 hrs, Bharat Heavy Electricals was quoting at Rs 38.60, down Rs 3.95, or 9.28 percent on the BSE.
The share touched its 52-week high of Rs 68.45 and its 52-week low of Rs 19.20 on 10 July 2019 and 25 March 2020, respectively.
Currently, it is trading 42.22 percent below its 52-week high and 105.99 percent above its 52-week low.
The scrip has surged 79 percent in the last three months.
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