Bharat Heavy Electricals Limited – BHEL share News and Analysis

Bharat Heavy Electricals Limited – BHEL share News and Analysis

About BHEL

from- wikipedia

Bharat Heavy Electricals Limited (BHEL) (Hindi: बी एच ई एल) owned and founded by the Government of India, is an engineering and manufacturing company based in New Delhi, India. Established in 1964, BHEL is India’s largest power generation equipment manufacturer.

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BHEL Stock Price

BHEL lost its trading price over 85% which is huge.

Lots of the attraction on the share is due to is lower trading price.

Price Chart

BHEL Finance

March 2020 Quarter result TBA on 2 June, 2020.

QuarterlyDEC 2019SEP 2019JUN 2019MAR 2019DEC 2018
Qtr. Sales5,679.356,225.724,531.6810,297.167,336.42
Net Profit158.82118.58-216.25682.70191.95

Book Value Rs 88.64 (2019)

Market Capital Rs 8 – 9,000 crore

Cash and Short Term Investment with company is about Rs 7,000 in 2019 FY.

But that is why company is stable and capable

Trade Receivable is Rs 22,000 crore, means pending payment.

Market sentiments are strong over payment receivable as most of customer of BHEL are state run government and central run government organization, so most of the money will get recover and value of company will increase.

This might be true still.

Down side of BHEL

But in this current time of COVID-19 all other companies are impacted and companies can ask for waivers over the payment and delay in payment will can be seen.

Also, most of PSU run by government are not usually great multibagger because companies are run by government which do make profit but main motive is to make profit and serve essentials of it’s businesses to help the community and public.

Also, BHEL is capital incentive business in which it can burn a lot of can in future.

Good Side of BHEL

BHEL invites Global OEMs to Leverage Its Facilities and Capabilities to Make in India

BHEL have a lots of factories, land and infrastructure available and idle. These can be utilized by other Global companies on terms like lease or partnership. This invitation can promote Make in India and due to current COVID condition lots of companies want to move to India and this can be a great opportunity, as India is a growing opportunity for Global companies. But these kind of impact takes time and can be seen over duration of 3-5 years.

Final Conclusion

According to me current price of BHEL is not undervalued, but if you are invest hold your shares.

For new investors don’t buy in yet till further updated on Trades Receivable and financial condition of BHEL company updates.

If company payments due are recovered on time and Global investment and companies are attracted then definitely BHEL can growth and head toward multibagger, as it’s Net Profit can growth and also company can pay more dividend.

I won’t personally invest at current stage in BHEL.


Disclaimer: These are my personal opinion don’t use this information for investment, contact your financial advisor and make your own assessment before making any investment.

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