Rs 14 EPS for BHEL expected for FY16: Anish Damania

In a chat with ET Now,Anish Damania, Head-Institutional Equities, IDFC Securities, shares his views on BHEL.

ET Now: Would you avoid buying into BHEL considering that there are lot of policy bottlenecks for that company?

Anish Damania: Yes, definitely while we have upgraded L&T stock to a buy, to an outperformer we have been negative on BHEL because one they are largely into the power sector where we feel that at least for the next two years order growth is going to be muted and secondly margins will continue to be under pressure as we go forward.

So in terms of earnings we are not looking at very robust earnings so we are looking at about Rs 14 EPS for FY16 and on that basis the stock is close to 20 times.