Sector Indices

Name Value Change %
BSE Carbonex 995.72 [6.8] [0.7]
BSE Greenex 1,627.17 [16.6] [1.0]
BSE SME IPO 256.37 0.7 0.3
BSE 100 6,131.30 [41.5] [0.7]
BSE 200 2,462.59 [17.3] [0.7]
BSE 500 7,609.99 [52.3] [0.7]
BSE AUTO 11,096.87 [197.4] [1.7]
 

BHEL (Q4 FY10) – BUY (Target Rs2,709, Upside 20.1%)

India Infoline Research Team / 18:58 , May 27, 2010

CMP Rs2,255, Target Rs2,709, Upside 20.1%

  • Robust 29% yoy revenue growth aided by 30% growth in power division
  • Continues to benefit from lower raw material cost, operating margin expands by 225bps yoy to 18.3%
  • Higher depreciation, due to commissioning of the enhanced capacity, partially offset operating profit growth – thus resulting into 42% PAT growth during the quarter
  • Order book continues to remain strong at Rs1.4trn, provides earnings visibility for the next 3 years
  • Maintain BUY, but reduce target marginally to Rs2,709/share to reflect higher competition in FY12

Click here to download the complete report