BHEL stock falls over 4% as company sends legal notices to customers
Shares of BHEL were witnessing sharp selling pressure following reports that the company has sent legal notices to non-paying customers.
By ET Online | Updated:
MUMBAI: Shares of BHEL witnessed sharp selling pressure as investors booked profits following media reports that the company has sent legal notices to non-paying customers.
The stock ended at Rs 130.50, down 4.43 per cent, on the BSE. It touched a high of Rs 137.75 and a low of Rs 126.40 in trade today.
According to a business daily, the company has sent notices to recover dues worth Rs 17,000 crore. Abhijeet Group, Adhunik Group, Visa Power and Monnet Ispat are some of the customers to whom the notices have been sent.
It had receivables worth Rs 41,000 crore till June 2012.
The recent developments don’t bode well for BHEL, says Citigroup. According to the report, if inflows are lesser than sales, the backlog will decline. Lower sales will lead to negative operating leverage, declining margins.
Deutshe Bank is of the view that BHEL carries a risk of falling below price/book.
The stock ended at Rs 130.50, down 4.43 per cent, on the BSE. It touched a high of Rs 137.75 and a low of Rs 126.40 in trade today.
According to a business daily, the company has sent notices to recover dues worth Rs 17,000 crore. Abhijeet Group, Adhunik Group, Visa Power and Monnet Ispat are some of the customers to whom the notices have been sent.
It had receivables worth Rs 41,000 crore till June 2012.
The recent developments don’t bode well for BHEL, says Citigroup. According to the report, if inflows are lesser than sales, the backlog will decline. Lower sales will lead to negative operating leverage, declining margins.
Deutshe Bank is of the view that BHEL carries a risk of falling below price/book.
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