Why BHEL shares are down 8% in two days

Shares in BHEL traded at the bottom of the 50-share Nifty for a second straight day. The heavy equipment maker was the top loser on the Nifty on Wednesday too. Investment bank has Citi downgraded the stock to "sell" with a target of Rs. 200 citing lack of visibility in new orders. BHEL is struggling to see light at the end of the tunnel, Citi said in a report on the state-run firm today. Every incremental order would be a 'hard-fought battle' for BHEL, Citi added. The investment bank said that BHEL is getting structurally de-rated. The stock looks cheap but earnings per share will decline every year, it said. BHEL shares traded at less than 5-times earnings in their previous down cycles though at current market price the stock trades at 9-10-times FY'13 EPS, suggesting further downside in share prices. ref: http://profit.ndtv.com/news/market/article-why-bhel-shares-are-down-8-in-two-days-310396