BHEL stock rating: Edelweiss maintains Buy, with revised TP of Rs 110
Posted on 13th December 2017 |
.jpg) |
| We had upgraded BHEL to ‘Buy’ in July 2016 anchored by a few positive triggers on the horizon. Of these, thermal ordering/demand has not picked up materially, which remains a key monitor able. On the positive side though, the company’s executable order book (OB) has jumped to 78% (54% last year) in H1FY18 as execution of slow-moving orders has gathered pace and gross margin has improved to ~40%. Consequently, FY19/20 earnings visibility has improved along with potential for further improvement in working capital as thermal projects gather momentum. Maintain ‘Buy’ with DCF-based revised TP of Rs 110 (earlier Rs 115, implying FY19E PE at 23x) given reasonable working capital improvement potential and a medium-term revival in thermal demand from current 6-8GW p.a. On perusing BHEL’s L1 positions, we expect projects worth ~Rs 250 billion to be awarded by Mar‘18 end. Consequently, BHEL’s OB would increase to ~Rs 1.1 trillion, 3.8x TTM revenues. Lift irrigation projects, rolling stock and Sox Nox ordering could further add to the closing OB. Movement in standstill orders (Ennore and Yadadari) in past 1 year and translation of L1 position, will drive 11% revenue CAGR over next 2-3 years. Ballooning debtors from ~300 days in FY13 to 480 days in FY16 had kept investors on tenterhooks. We believe the debtor recovery witnessed in FY17 to continue going forward, despite minor GST-led impact in H1FY18. While volatility in P&L is seen due to provision/reversal of liquidation damages, in our view, BHEL’s strong track record, mere 2% of projects have faced liquidation damage charges till date and exclusion of JDU clause for the new projects are likely to cushion OPM, albeit bigger delta will depend on extent of ramp-up. We note that the government’s thrust on renewables was the key negative for BHEL in past 1 year. However, we believe, such transition will be slower and tendering for conventional energy would range in 10-12GW, including replacement in foreseeable future, where BHEL commands significant market share, ~65%. |
|
|
|
|
Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
.jpg) |
Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
|
|
Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
.jpg) |
The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
|
|
LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
.jpg) |
In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
|
|
Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
.jpg) |
Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
|
|
World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
.jpg) |
In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
|
|
|
|
| Be the first person to write a business review for BHEL stock rating: Edelweiss maintains Buy, with revised TP of Rs 110 |
|
|
|
