BHEL definitely good medium to long term bet: Ashit Suri, Fundamental Analyst, JV Cap

Ashit Suri, Fundamental Analyst, JV Cap, in a chat with ET Now talks about L&T and BHEL.

Do you believe that the longer term competitive dynamics for an L&T look better than that of a BHEL?

Basically both these companies are leaders in the capital good space so I would not want to make that kind of a comparison here in fact in terms of L&T we have seen last couple of quarters they have not been very impressive in their performances keeping their past record in mind. But I am sure L&T is also a good accumulate call for the long term as far as BHEL is concerned its continued with its impressive performances.

Of course the top line has been a little slower in the last quarter but nevertheless the company is doing very well and latest in the news we heard of BHEL increasing its R&D expenditure also. Its market share seems to be very strong with revenue visibility seen over 5 times FY10 revenues.

So keeping all these in mind valuations are looking attractive at 18 times PE multiple for FY12, good amount of tie ups in the new peer space, voltage transmission equipment space and leader in its space so BHEL definitely looks good medium to long term bet and should be accumulate for every portfolio I would say.

ref:
http://economictimes.indiatimes.com/Views/Recommendations/articleshow/6590657.cms