What makes BHEL a good buy at the current levels?

Bharat Heavy Electricals Limited (BHEL) has underperformed the Sensex over the past 1 year despite a robust growth in sales and operating margins. The decline in stock price seems to be driven by the negative sentiment prevailing in the sector amid a slowdown in investment growth. The company, which recently announced its flash results for financial year 2010-11, looks set for a strong growth track.

Beating its own guidance of order inflow of Rs 60,000 crore for the year, Bhel secured orders worth Rs 60,507 crore. Its total outstanding orders at the year end were Rs 1,64,130 crore, which is nearly four times its provisional FY11 turnover, giving it a reasonable revenue visibility over the next few years.

The company also entered into various strategic tie-ups during the year, including a manufacturing co-operation agreement with GE India Industrial Private , a pact with Abengoa, Spain, to develop state-of-the-art Concentrated Solar Power Projects in India and a collaboration agreement with Nuovo Pignone for manufacturing of centrifugal compressors. It has also formed a joint venture with the government of Kerala to manufacture alternators and other products like LT motors and traction equipment for Indian Railways.

ref:
http://economictimes.indiatimes.com/features/investors-guide/what-makes-bhel-a-good-buy-at-the-current-levels/articleshow/8000261.cms