Source: IRIS Exclusive (12-OCT-10)
Comments | Post Comment
Sharekhan has recommended `Hold` on Bharat Heavy Electricals (BHEL) with a price target of Rs 2,832 as against the market price (CMP) of Rs 2,575 in its report dated Oct. 11, 2010. The brokerage house gave the following investment rationale:
While the competition is likely to intensify in the supercritical power equipment space with more players in the sector, BHEL`s (Q,N,C,F)* robust order book (4.5x its FY2010 revenue) minimizes the need for any aggressive bidding.
We also remain positive about its recent initiatives like the ones in the power transmission & distribution sector and overseas power equipment market, which would help the company in diversifying its business profile and geographies.
At the current market price, the stock is trading at a price to earnings of 20x and enterprise value/ earnings before interest, depreciation, tax and amortisation of 13x on our FY2012 estimate. We maintain our Hold call on the stock.
To view complete report click here
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment