BHEL slides almost 5% in a weak market despite ‘strong’ Q3
On Tuesday, Bharat Heavy Electricals' stock suffered a notable plunge of more than 4%, representing its most dramatic decline in five months. This downturn stemmed from investor concerns over margin pressures revealed in the company's third-quarte...
By ET Bureau |
Shares of Bharat Heavy Electricals (BHEL) dropped more than 4% Tuesday - the steepest fall in five months - after the company's margin pressures evidenced in third-quarter earnings failed to enthuse investors in a weak market.
Analysts expect margin improvement once the company starts executing new orders after FY26. BHEL shares plunged 4.9% to ₹250.2 on Tuesday. The benchmark Nifty fell 1.4%.
"Despite the strong set of numbers, BHEL bore the brunt of the bearish market sentiment on Tuesday as most sectors also witnessed sharp falls, due to high selling pressure," said Vyom Chheda, analyst, StoxBox. Chheda said there are reports of easing of norms for Chinese bidders for government orders, further weakening sentiment.
In the past one month, shares dropped by over 11% while Nifty shed 3.6% in the same period. JM Financial retained a 'Buy' rating on BHEL but slashed target price to ₹355 from ₹363, given the pressure on margins due to completion of Talcher project but added that it will soon see better margins due to equipment supply.
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