Bharat Heavy Electricals Limited (BHEL) rated Buy
Posted on 20th December 2017 |
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| Bharat Heavy Electricals’ (BHEL) order win of the Udangudi thermal power project vindicates our view of translation of L1 position into order inflow by March 2018. We had highlighted in our recent company update titled ‘Steady against all odds; pace of recovery key’, translation of L1 position in 4 projects into actual order inflow (including Udangudi) by March 2018. BHEL has bagged the Rs 73 billion EPC order from TANGEDCO for setting up the 2×660 mw Udangudi thermal power plant. We expect the balance 3 projects in which BHEL is L1 to also be awarded by March 2018. Improvement in executable order book (OB) to 78% (from 54% last year) and translation of L1 position provides comfort to our FY19/20 revenue estimates. Further, we expect debtors to decline and release cash of ~Rs 47 billion over FY17-20. A leaner balance sheet along with medium term recovery in thermal ordering results in favourable risk-reward. Maintain ‘buy’ with DCF-based TP of Rs 110. The Udangudi project located in Thoothukudi district of Tamil Nadu will be executed by BHEL on EPC basis. All clearances for the project are in place. While the project does not include Sox Nox, it includes the JDU clause. Reduction in slow-moving OB to 22% (46% last year) and translation of L1 position will improve FY19/20 revenue visibility. While we acknowledge the government’s focus on renewable segment, the government is monitoring thermal projects (under execution as well as upcoming projects). We expect thermal ordering to pick up from current 6-8GW with the government monitoring and country-level thermal PLFs improving from current ~60%. While the stock has under-performed (7% versus 25% Nifty returns) in past 1 year, we see the following catalysts: recovery in short-term working capital; and improvement in medium-term ordering/profitability. At CMP, the stock trades at 19.7x FY19E. Maintain ‘buy/SP’. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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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. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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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. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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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). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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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. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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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. |
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