Macquarie Capital puts 'buy' on BHEL
Macquarie Capital has initiated coverage on Bhel with a ‘buy’ rating, citing reduced input prices, and likely margin expansion as key triggers.
By ET Bureau |
CMP: Rs 1,374.10
Target price: Rs 1,935
Macquarie Capital has initiated coverage on Bhel with a ���buy��� rating, citing reduced input prices, and likely margin expansion as key triggers. According to the brokerage, heavy engineering major���s expansion plans at its Trichy, Haridwar, Bhopal and Hyderabad plants are on track. These four plants account for 65% of Bhel���s revenues.
Most of the current large order book of around Rs 1.1 trillion for Bhel comprises orders for FY3/08 and FY3/09. ���These orders would not require balance of plant equipment in the next 12-18 months, which implies that any intermittent shortage would not halt the entire process,��� a Macquarie note to clients said.
Target price: Rs 1,935
Macquarie Capital has initiated coverage on Bhel with a ���buy��� rating, citing reduced input prices, and likely margin expansion as key triggers. According to the brokerage, heavy engineering major���s expansion plans at its Trichy, Haridwar, Bhopal and Hyderabad plants are on track. These four plants account for 65% of Bhel���s revenues.
Most of the current large order book of around Rs 1.1 trillion for Bhel comprises orders for FY3/08 and FY3/09. ���These orders would not require balance of plant equipment in the next 12-18 months, which implies that any intermittent shortage would not halt the entire process,��� a Macquarie note to clients said.
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