Multibagger stock: BHEL reports below estimate Q4 nos; stock slips; here is what brokerages suggest
BHEL share price: At around 10:36 a.m.,shares of BHEL were down 4.18 per cent or Rs 13.35 at Rs 305.85. The market capitalisation of the company at around the same time stood at Rs 1,06,429.27 crore.
![Multibagger stock: BHEL reports below estimate Q4 nos; stock slips; here is what brokerages suggest](https://cdn.zeebiz.com/sites/default/files/2024/05/22/294878-pexels-pixabay-210607.jpg?im=FitAndFill=(1200,900))
BHEL share price: Bharat Heavy Electrical Ltd (NSE: BHEL) shares slipped after global brokerages revised their stance on the stock. The revision came soon after the company reported below-than-estimated Q4FY24 numbers, on Tuesday after market hours.
At around 10:36 a.m.,shares of BHEL were down 4.18 per cent or Rs 13.35 at Rs 305.85. The market capitalisation of the company at around the same time stood at Rs 1,06,429.27 crore.
Brokerage view on BHEL
Morgan Stanley maintained an 'equalweight' rating on BHEL and gave a target of Rs 220 apiece. As per the brokerage even though the Q4 earnings were below estimates, earnings visibility is improving with strong orders and a healthy prospect pipeline. However, it added a depleted vendor base, and extending attractive terms is a key risk.
Meanwhile, CLSA continued with 'sell' and raised the target to Rs 189 from Rs 135 apiece.
Anil Singhvi's view
Zee Business Managing Editor Anil Singhvi has recommended selling futures of BHEL for targets of Rs 310, Rs 302, and Rs 295, keeping the stop loss at Rs 324 apiece.
As per Singhvi, Q4 results are below estimates and execution is poor. Further, he said that the company has weak cash flow and working capital management but a very strong order book. Additionally, the stock has already gained over 38 per cent in three months and 300 per cent in one year
"From a long-term investment perspective, investors should only buy the stock if it slips more than 10 per cent," said Anil Singhvi.
How did BHEL fare in Q4?
State-owned BHEL on Tuesday reported an over 25 per cent decline in its consolidated net profit to Rs 489.62 crore in the March quarter, mainly due to higher expenses.
Its consolidated net profit stood at Rs 658.02 crore in the quarter ended on March 31, 2023, according to a regulatory filing.
Total expenses of the firm rose to Rs 7,794.11 crore in the quarter from Rs 7,411.64 crore in the same period a year ago.
Total income in the quarter rose marginally to Rs 8,416.84 crore in the quarter from Rs 8,338.61 crore in the year-ago period.
Its consolidated net profit in the fiscal 2023-24 also declined to Rs 282.22 crore from Rs 654.12 crore in 2022-23.
Total income in the fiscal increased marginally to Rs 24,439.05 crore from Rs 23,853.57 crore in 2022-23.
BHEL dividend
The board has recommended a final dividend at the rate of 12.50 per cent or 25 paise per share with a face value of Rs 2 each on paid-up share capital of the company for the fiscal year 2023-24, it stated.
BHEL share price: Past performance
In a year, shares of BHEL have given a multi-bagger return of over 302 per cent against Nifty50's rise of over 23 per cent.
Catch all the updates of the May 22 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.
DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
11:00 AM IST