Tuesday, August 27, 2013

BHEL slumps 6%, Credit Suisse cuts target price to Rs 99

BHEL shares plunged more than 6 percent intraday Wednesday, continuing for the second consecutive session. Credit Suisse has an underperform rating on the stock. The brokerage house also cut its target price on the stock to Rs 99 from Rs 164 apiece, citing deteriorating orderbook and power inflow concerns. Credit Suisse says that revenue de-growth was seen in past three quarters and margin declined sharply in first quarter (April-June) of FY14, but the risk-reward is still favourable, it adds. The brokerage house cut FY14 & FY15 order inflow estimate by 6 percent and 20 percent, respectively. It also trimmed long-term market share estimate to 25 percent. State-owned capital goods company's first quarter standalone net profit halved to Rs 465.4 crore from Rs 920.9 crore in a year ago period, dented by weak power segment performance, despite higher other income. Net sales dropped 23.7 percent to Rs 6,352.5 crore in April-June quarter from Rs 8,326.2 crore in corresponding quarter of last fiscal and operating profit margin plunged 890 bps year-on-year to 4.5 percent during the quarter. The stock was down 2.41 percent to Rs 109.35 on the Bombay Stock Exchange at 11:23 hours IST. It lost 30 percent in past one month and more than 50 percent in one year. ref: http://www.moneycontrol.com/news/buzzing-stocks/bhel-slumps-6-credit-suisse-cuts-target-price-to-rs-99_941616.html

Monday, August 26, 2013

BHEL extends rally on hopes of better demand prospects

Bharat Heavy Electricals (BHEL), an integrated power plant equipment manufacturer, extended gains on Monday on hopes of better demand prospects after the reports said the government may make mandatory domestic sourcing for ultra mega power projects. Shares ofthe companyare trading at Rs 123.80, up Rs 7.7, or 6.63% at the Bombay Stock Exchange (BSE) on Monday at 4:00 p.m.The scrip has touched an intra-day high of Rs 124.65 and low of Rs 117.10. The total volume of shares traded at the BSE is 2,209,832.In the earlier session, the shares gained 8.1%, or Rs 8.7, at Rs 116.10. Currently, the stock is trading down 54.56% from its 52-week high of Rs 272.45 and above 23.37% over the 52-week low of Rs 100.35. Share Price Movement Period Pricein Rs Gain/(Loss) in Rs in % 1 Week 176.40 (5.75) (3.26) 1 Month 195.80 (25.15) (12.84) 3 Months 180.00 (9.35) (5.19) 6 Months 227.55 (56.90) (25.01) 1 Year 221.10 (50.45) (22.82) Note: Based on previous day closing price. ref: http://newindianexpress.com/business/hot_stocks/BHEL-extends-rally-on-hopes-of-better-demand-prospects/2013/08/26/article1753127.ece

Saturday, August 24, 2013

Work with devotion to enhance company's growth: Chairman of BHEL

BP Rao, chairman and managing director (CMD) of Maharatna PSU company, BHEL, visited the hydro, transformer, traction and electrical machines manufacturing division of BHEL, Bhopal on Friday. He assessed the manufacturing status of equipments developed for major power projects and reviewed the facilities available in them. In addition to this, Rao inaugurated the advanced storage bay built for transformer division. On this occasion, OP Bhutani, principal advisor, (ER and D), BHEL, Shashi Ranjan Prasad, executive director, BHEL, Bhopal and other senior officials were also present. ref: http://timesofindia.indiatimes.com/business/india-business/Work-with-devotion-to-enhance-companys-growth-Chairman-of-BHEL/articleshow/22029157.cms

Wednesday, August 21, 2013

Bhel recovers on bargain hunting

Bharat Heavy Electricals gained 6.6% to Rs 108.20 at 11:21 IST on BSE, with the stock recovering on bargain hunting after 4-day 16.05% slide. Meanwhile, the S&P BSE Sensex was up 184.06 points or 1.01% at 18,430.10 On BSE, 9.84 lakh shares were traded in the counter as against average daily volume of 6.45 lakh shares in the past one quarter. The stock hit a high of Rs 109 and a low of Rs 103.20 so far during the day. The stock had hit a 52-week low of Rs 100.35 on Tuesday, 20 August 2013. The stock had hit a 52-week high of Rs 272.45 on 5 October 2012. The stock had underperformed the market over the past one month till 20 August 2013, falling 41.58% compared with the Sensex's 9.45% decline. The scrip had also underperformed the market in past one quarter, sliding 49.73% as against Sensex's 9.78% fall. more at: http://www.business-standard.com/article/news-cm/bhel-recovers-on-bargain-hunting-113082100323_1.html

Saturday, August 17, 2013

Bhel Project delay irks Assam Power Corp

State-owned Assam Power Generation Corporation Ltd (APGCL) has served a pre-termination notice to Bharat Heavy Electricals Ltd (Bhel) for delay in the implementation of a 100-MW Namrup replacement power project. "APGCL is taking action for recovery of liquidated damage from BhelBSE -10.70 % as per the contract," Assam Power Minister Pradyut Bordoloi told ET. Bhel was awarded the EPC contract of the project in December 2008 and the commissioning of the project was scheduled for January 2012. Chief Minister Tarun Gogoi had laid the foundation stone for the project on March 1, 2009. According to an APGCL statement released at the inauguration meeting, it was committed that Bhel would implement the project 100 days ahead of the scheduled date of completion. APGCL said Bhel could complete only 40% of the civil work and is asking for several months more to complete the project . "Bhel has implemented several projects across the country, however, we are pained that it has failed to deliver our project in time," Bordoloi said. Assam is looking to commission new projects as the state is facing huge power shortage. ref: http://economictimes.indiatimes.com/news/news-by-industry/energy/power/bhel-project-delay-irks-assam-power-corp/articleshow/21876164.cms

Thursday, August 15, 2013

BHEL launches initiative to achieve process improvement.

The Bharat Heavy Electricals Limited (BHEL) has launched an initiative to achieve process improvements in all aspects of its operations to create substantial value for its customers in terms of cost competitiveness and delivery. Hoisting the national flag on the plant premises at Tiruverumbur on account of Independence Day on Thursday, executive director A V Krishnan said, "Though the plant has contributed a lot towards power production in the country, improvements in processes will be vital for continued success, given the market trend of increasingly stiffer project commissioning targets and the growing squeeze on margins due to tougher competition." more at : http://timesofindia.indiatimes.com/city/madurai/BHEL-launches-initiative-to-achieve-process-improvement/articleshow/21852364.cms

Tuesday, August 13, 2013

'Make BHEL nodal agency for govt's overseas power projects'

Amid state-run BHEL grappling with tough business environment, Heavy Industries Ministry will pitch for making the powergear maker the nodal agency for executing all overseas power projects that are financed by the Indian government. Besides, the parent Ministry would make efforts for according preference to Bharat Heavy Electricals Ltd (BHEL) in providing spares and services for government-funded foreign power projects. BHEL, the country's leading power equipment maker, is going through tough times, primarily due to sluggishness in the sector and cheaper overseas imports hurting its prospects. The Ministry of Heavy Industries and Public Enterprises has assured BHEL of various possible assistance from the government side. more at: http://www.business-standard.com/article/companies/make-bhel-nodal-agency-for-govt-funded-overseas-power-projs-113081100200_1.html

BHEL's ancillary units face closureAncillary units under the treat of closing down

Most of the 500-odd factories that have been supplying materials to Bharat Heavy Electricals Limited (BHEL) under earlier outsourcing system (OS) for almost three decades have demanded to revive the old system and scrap the new away centre fabrication (ACF) that was introduced more than a year ago. Under OS, raw materials used to be supplied by the parent BHEL and the work was in continuous flow. After the ACF was introduced, more than 80% of these ancillary product manufacturers closed shop in phases, because they could not get the raw materials, which were now their responsibility. "It is very difficult to procure steel and other items from northern India and we are not able to invest money in the first place," stated an Indian Legal Rights Protection Helpline letter that was addressed to the district collector Jayashree Muralidharan, on Monday. more at: http://timesofindia.indiatimes.com/city/madurai/BHELs-ancillary-units-face-closureAncillary-units-under-the-treat-of-closing-down/articleshow/21791726.cms

Thursday, August 8, 2013

Chinese firms steal a march over Bhel for overseas orders

Bharat Heavy Electricals Ltd (Bhel) isn’t just struggling with orders drying up in India, it’s losing out to competition in overseas markets as well, especially in Africa and to Chinese power generation equipment manufacturers such as Dongfang Electric Corp. and Shanghai Electric Power Co. Ltd offering friendlier financing. In the domestic market, the Indian government’s move last year to increase the import duty on power generation equipment to 21% from 5% earlier to thwart competition from Chinese manufacturers hasn’t helped much. “In the overseas markets, everyone is asking for financing. The Chinese are doing it in a big way. But the Indian government is not keen to fund big projects. They are funding small projects,” said a Bhel executive, requesting anonymity. Bhel is looking abroad for contracts over fears its domestic market share may decline given the hurdles faced by domestic power projects. The company’s orders dropped to Rs.31,528 crore in the year ended March from Rs.60,507 crore in 2010-11, although it’s an improvement over Rs.22,096 crore in 2011-12. more at: http://www.livemint.com/Companies/HzKwmNsU1E9YNaGUoeLo9L/Chinese-firms-steal-a-march-over-Bhel-for-overseas-orders.html

Wednesday, August 7, 2013

BHEL wins Rs 265-crore order from BPCL for Kochi Refinery project

BHEL today said it has bagged a Rs 265-crore order from Bharat Petroleum Corporation Limited for supplying equipment for latter's refinery project in Kochi. BHEL has won a contract for supplying the Gas Turbine Generator package for an energy efficient and environment friendly co-generation captive power plant at Kochi Refinery in Kerala, the company said in a statement. Valued at around Rs 265 crore, the order has been placed by Bharat Petroleum for its Integrated Refinery Project at Kochi Refinery, it said. The order envisages supply and supervision of three gas turbines of 34.5 MW rating each, with associated auxiliaries and control systems. more at: http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/bhel-wins-rs-265-crore-order-from-bpcl-for-kochi-refinery-project/articleshow/21678211.cms

Tuesday, August 6, 2013

BHEL forecast stumbles on reality

When Bharat Heavy Electricals Ltd (BHEL) announced its annual results for 2012-13 on May 23, Chairman B Prasad Rao surprised the audience by claiming fresh order inflows had jumped 43 per cent to Rs 31,528 crore. This came as launches of new power projects were at an all-time low. Rao further built on positive sentiment with expectations of continued orders from the public sector in the near future. Less than three months since, that bubble of positivity and assured growth has burst. Fresh orders dipped 80 per cent to Rs 1,500 crore in the first quarter ended June. Net profit fell 50 per cent to Rs 465 crore and net sales declined 24 per cent to Rs 6,352 crore. Accordingly, the share price tumbled 24 per cent within two days, to close at Rs 120.9 on Monday. The government also shelved an earlier plan to offload five per cent stake in the company, owing to the low market valuation and bad order book position. Ref: http://www.business-standard.com/article/companies/how-the-bubble-of-bhel-s-growth-was-burst-113080600515_1.html

Monday, August 5, 2013

Govt shelves Bhel disinvestment on valuation, order book concerns

The disinvestment department has shelved plans to sell a stake in power equipment maker Bharat Heavy Electricals Ltd. (Bhel), citing valuation concerns and a depleting order book. Sources said the department has withdrawn the 5% disinvestment proposal in view of Bhel’s low share price, decreased capital expenditure and less demand for power-sector equipment. The Bhel share hit a one-year low on the BSE on Monday, declining 19.64% to Rs120.05, after the company’s June quarter net profit almost halved to Rs465.43 crore on account of lower sales. The scrip has lost over 60% since 2011, when the stake sale was approved. more at: http://www.livemint.com/Companies/v9FoAwSdJtqw7lUCLvtB1J/Govt-shelves-Bhel-disinvestment-on-valuation-order-book-con.html

Sunday, August 4, 2013

BHEL tanks 12%, hits 52-week low as April-June earnings disappoint

Bharat Heavy Electricals LtdBSE -14.79 % (BHEL) plunged as much as 11.6 per cent in morning trade to hit its 52-week low of Rs 132 on Monday, after the power equipment maker posted nearly 50 per cent decline in net profit. At 09:50 a.m.; BHELBSE -14.79 % was trading 10.7 per cent lower at Rs 133.30. The stock has plunged nearly 12 per cent to hit its 52-week low of Rs 132. The power equipment maker reported a net profit of Rs 465.43 crore for the first quarter ended June 30, 2013 weighed down by lower sales. It had clocked a net profit of Rs 920.90 crore in the year-ago period. more at: http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/bhel-tanks-12-hits-52-week-low-as-april-june-earnings-disappoint/articleshow/21615523.cms

Saturday, August 3, 2013

Bhel net crashes to Rs 465 cr

The slowdown in investments in the power sector has taken a toll on the performance of Bharat Heavy Electricals (Bhel) with the engineering firm’s profits crashing nearly 50%, for the April-June quarter, to Rs 465.43 crore. The numbers missed analysts estimates by a wide mark. On a sequential basis, the decline in Bhel’s net profit was even sharper at 85%. The power equipment maker’s net sales in the April-June quarter were down sharply to Rs 6352.55 crore, a 23% fall year-on-year. On a quarter-on-quarter basis, the decline in net sales was a whopping 66% over Rs 18,850 crore. The firm’s profits fell despite the fact that total expenses were lower by 16.5% y-o-y at Rs 6,300 crore in Q1 FY14. more at: http://www.financialexpress.com/news/bhel-net-crashes-to-rs-465-cr/1150789

Friday, August 2, 2013

BHEL Q1 PAT may dip 43% at Rs 528 cr: Motilal Oswal

Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the capital goods sector. The brokerage house expects Bharat Heavy Electricals (BHEL) to report a 83.4 percent degrowth quarter-on-quarter (degrowth of 42.6 percent year-on-year) in net profit at Rs 528.43 crore. Revenues are expected to decrease by 59.9 percent Q-o-Q (down 9.3 percent Y-o-Y) to Rs 7552.2 crore, according to Motilal Oswal. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 80 percent Q-o-Q (down 22.5 percent Y-o-Y) to Rs 932.2 crore. Motilal Oswal report on Bharat Heavy Electricals We expect the pace of decline in revenues to sharpen sequentially, with depleting order book. We expect 9% YoY revenue decline in 1QFY14. Sharp decline in Industrial orders would also have a negative impact on revenues during the quarter. Execution of projects is also likely to be constrained, particularly in private sector orders. more at: http://www.moneycontrol.com/news/brokerage-results-estimates/bhel-q1-pat-may-dip-43-at-rs-528-cr-motilal-oswal_929619.html

PM asks BHEL to take lead in developing solar power technology

Prime Minister Manmohan Singh today asked Bharat Heavy Electricals Ltd (BHEL) not only to take lead in solar energy in terms of power generation but also in the development of solar power technology in India. The government's Jawaharlal Nehru National Solar Mission's success has the potential to enhance India's energy security, said the Prime Minister. In his speech after dedicating the Rs 1,000 crore High Pressure Boiler Plant Unit-II, a greenfield initiative and the Rs 300 crore power plant piping unit at Thirumayam, on the Southern Tamil Nadu, set up BHEL, the Prime Minister said the Solar Mission seeks to develop 20,000 MW of solar power generating capacity by the end of the 13th Five Year Plan and its success has the potential of enhancing India's energy security and will help to combat climate change. The Prime Minister said “I sincerely hope that Bharat Heavy Electricals, which is bestowed with engineering expertise, manufacturing prowess and a commendable human resource base, will not only take the lead in solar energy in terms of power generation but also in the development of solar power technology in India. This is a difficult commercial decision, but well worth taking in the long term interest of our country”. more at: http://www.business-standard.com/article/companies/pm-asks-bhel-to-take-lead-in-developing-solar-power-technology-113080200769_1.html