Moderation in earnings growth tempers Bhel’s valuation

In a recent presentation, Bharat Heavy Electricals Ltd (Bhel) indicated that its share of orders for power equipment during the 12th Plan has inched up marginally when compared with that in the 11th Plan. More interesting is the fact that the share of the much-feared Chinese players has declined. But valuations of Bhel are moving southwards.

While brokerages have a “buy” recommendation for the stock, most have revised the “target price” downwards by 20-25% in the last 18 months.

ref:
http://www.livemint.com/2011/06/20231951/Moderation-in-earnings-growth.html