BHEL doesn't look promising, L&T a better bet: Mayuresh Joshi, Angel Broking

In a chat with ET Now, Mayuresh Joshi, VP, Institution, Angel Broking, shares his views on BHEL and L&T.

ET Now: BHEL has a sizeable order flow but does it help the company at all?

Mayuresh Joshi: If you look at the entire sector, it is bereft of all order flows and the kind of investment activity seen on the ground is not picking up as seen from Q1. We are not expecting any great numbers to come in for BHEL though sequentially it will be a little bit better considering the base that BHEL was working out with. Depleting order book generally for BHEL gives a very weak visibility. The margins would be under pressure as well and the cash position has gone down. There is increased competition intensity and so it will be some while before BHEL can regain its market share.

So within the space itself, if one really needs to take a long term call, L&T is better placed with the net working capital going down and the consolidated ROEs expected to move up. So L&T will be in a sweet spot probably over the next two to three years from a long term investors perspective.