BHEL
GOLDMAN SACHS ON BHEL : 01.09.2021
• Maintain SELL, Target at Rs 23/share
Steps towards diversification may not be enough
* BHEL has had a disappointing last few years driven by weak execution
• High fixed costs & COVID driven disruptions
* Focus on cost rationalization and cash collection is generating results
CLSA ON BHEL : 14.06.2021
• Maintain SELL, Target at Rs 40/share
• Terrible 4Q: backlog fell 6% YoY and large liquidated damages provided
• Weak discoms and lower thermal PLFs delay capex
* Divestment: nice story but difficult to execute
CLSA ON BHEL : 14.06.2021
* MAINTAIN SELL TARGET: 40
* CLSA maintains SELL rating on BHEL after Q4 results, says the quarter was weak given co's execution, cuts FY22 EPS by 7%
* Q4 Weak With Its Execution
* Cleaned Up Its Balance Sheet With 1,800 Cr In Provisions
* Whether This Is A Precursor To Divestment Remains To Be Seen
* Backlog Fell 6% YoY As Award Of Its Largest Contract From NTPC Slipped To FY22
* Cut FY22 EPS Estimate By 7% To Factor In Weak Discom Financials
GOLDMAN SACHS ON BHEL : 14.06.2021
* MAINTAIN SELL TARGET: 23
* BHEL delivered a disappointing quarter, co does not warrant current high multiple, GS says, maintains SELL on the stock
* Delivered A Disappointing Quarter
• Reported Losses Were Significant At ₹1,000 Cr
• Even Adjusting For One Time Provisions, PAT Would Have Been At ₹400 Cr
* Expect Even FY22 To Generate No Profit
* Co Does Not Warrant Current High Multiple
KOTAK INSTL EQUITIES ON BHEL : 14.06.2021
* MAINTAIN SELL TARGET: 34
* BHEL reported weak results on execution, gross margin & working capital, Kotak Institutional Equities says
* Reported Weak Results On Execution, Gross Margin & Working Capital
* Provisions/Write-off Taken, Cast Doubts On Ability To Release Remaining Working Cap
* Weak Gross Margin Casts Doubts On Its Ability To Report Topline High Enough To Cover Fixed Costs
