Expect BHEL to get 6k MW orders in FY14: Anand Rathi

Just because BHEL is suffering from a severe drop in capex in the investment cycle, it is not the end of business or end of the road for this company, says Amol Rao of Anand Rathi. The company will not be able to perform up to its historical highs, but it may garner orders of around 6000 megawatts for FY14, he says. "The pessimism is overdone and at some point in time your valuations deserve a look," he adds. He believes it'll take another 5-6 months for order bookings to resume, which would then lead to an improvement in the rating of the stock. Today, the requirement of state and central electricity boards is 7,000-8,000 MW, which can be serviced only by two or three players with such large operating capacity, Rao says. Going forward, these are going to have environmental clearances and coal availability in place, with financial closure, he says. These projects are primarily central and state backed, he adds. more at: http://www.moneycontrol.com/news/business/expect-bhel-to-get-6k-mw-ordersfy14-anand-rathi_951901.html