Outperform BHEL, target Rs 140: CLSA

CLSA maintains an outperform rating on BHEL post March quarter results but raised its 12-month target price to Rs 140 from Rs 138 earlier. The cash balance of Rs 101 bn on the books (32% of market cap) on recovery from debtors is positive sign.

CLSA remains positive on the stock given power reform. It sees respite from the headwinds of slow moving, and low-margin legacy orders. The stock is likely to benefit from recent govt advisory to central, and state owned power utilities.