Citigroup resumes a 'Sell' rating on BHEL
Once BHEL gets the last of the reserved bulk orders in FY13, every incremental order should be a hard-fought battle.
By ET Bureau | Updated:
Citigroup has resumed its coverage on BHEL with a 'Sell' rating and a target price of Rs 250.
Severe coal/ gas shortages, high international coal prices, poor SEB financials and land acquisition/environmental delays have shrunk the Indian BTG market.
Over the past 5-6 years, BHEL has faced competition from Chinese suppliers. Once BHEL gets the last of the reserved bulk orders in FY13, every incremental order should be a hard-fought battle.
Import duties can perhaps provide a positive sentiment, but Citigroup wonders if it will make any difference as the 12th Plan (FY13E-17E) ordering is over.
Severe coal/ gas shortages, high international coal prices, poor SEB financials and land acquisition/environmental delays have shrunk the Indian BTG market.
Over the past 5-6 years, BHEL has faced competition from Chinese suppliers. Once BHEL gets the last of the reserved bulk orders in FY13, every incremental order should be a hard-fought battle.
Import duties can perhaps provide a positive sentiment, but Citigroup wonders if it will make any difference as the 12th Plan (FY13E-17E) ordering is over.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
