There is going to be a turnaround for BHEL in next two years: Sandip Sabharwal

Sandip Sabharwal: Liking something and betting on it as a dark horse with logic is different. I would say that BHELBSE 3.58 % has something going for it. It recently started getting fresh orders from the power sector. The bigger share of profitability for them used to come from the industrial segment, now that industrial segment went down sharply and it is likely to come back as recovery plays out. ET Now: But it is a great company, there are two factors which are concerns for BHEL-1) they are not updated with technology, they have got redundant technology and 2) for there is still surplus power capacity in India. For power generation capacity or for power generation machinery demand to come back, power demand has to be gobbled up so the surplus power demand capacity. Demand will only come after two or three years. What would you say about that? Sandip Sabharwal: Surplus power capacity by itself is a mythical creation of state electricity boards. They do not supply and then because on every sale they make a loss, they say it is the power deficit has gone down. Actually there is enough power requirement in this country. There is enough capacity which needs to come up eventually because right now the industrial demand is low as the industry is not doing so well. Eventually industrial demand will pick up, domestic demand also will pick up and as the government goes around restructuring the SEBs and as the power for all call gets implemented by 2020-2022, we will see much more power being required in India. more at: http://economictimes.indiatimes.com/markets/stocks/recos/there-is-going-to-be-a-turnaround-for-bhel-in-next-two-years-sandip-sabharwal/articleshow/50292814.cms