Make sense to take the long-term call on BHEL: Sangeeta Purushottam

In a chat with ET Now, Sangeeta Purushottam, MD, Nine Rivers Capital, talks about BHEL.

ET Now: Do you still like BHEL? If yes, why?

Sangeeta Purushottam: From the long-term point of view, I do still like BHEL primarily the valuations are fairly attractive. The stock actually is trading at almost five-year lows in terms of its PE multiple. We still have reasonable earnings visibility over the next year, and the stock has been beaten down partly because of concerns on competition from Chinese manufacturers partly because of slowdown in the capex cycle but the stage where we are, the capex cycle cannot remain depressed forever, so it really has to rebound. If you are getting it at valuations, which are close to five-year lows, it does make sense to take the long-term call.