CLSA has upgraded Bharat Heavy Electricals (BHEL) to 'buy' from 'outperform' but kept the price target unchanged at 2,800 rupees.
BHEL is trading close to a 5-year low valuations, CLSA said in a note, adding the company is trading at a discount to Shanghai Electric and Harbin Power. CLSA argues that concerns of competition from Chinese and domestic firms are overdone and expects BHEL to post growth in order flows in FY12. CLSA expects 19 percent revenue and 24 percent earnings per share growth over FY10-14. At 2:39 p.m., the stock was up 2.19 percent at 2,327.90 rupees.
ref:
http://www.financialexpress.com/news/clsa-upgrades-bhel-stock-to-buy/724079/
Monday, December 13, 2010
Friday, December 10, 2010
IOC, BHEL, SAIL do not have required independent directors:CAG
As many as 17 listed PSUs, including blue chip entities like Indian Oil , BHEL and SAIL do not have the requisite number of independent directors, an important tool of corporate governance, says a CAG report tabled in Parliament today.
Describing independent directors as the most significant instrument of corporate governance, the CAG report said, only they can challenge the decisions of the management and protect the interest of shareholders and other stakeholders.
As per Clause 49 of the listing agreement between the company and the stock exchange, one-third of the board members should be independent directors provided the company is headed by a non-executive chairman.
In case the board is headed by an executive chairman, at least half of the board should comprise independent directors.
"Out of 47 listed government companies, the boards of 17 companies did not have the required number of independent directors," said Comptroller and Auditor General (CAG) report.
more at:
http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/IOC-BHEL-SAIL-do-not-have-required-independent-directorsCAG/articleshow/7078037.cms
Describing independent directors as the most significant instrument of corporate governance, the CAG report said, only they can challenge the decisions of the management and protect the interest of shareholders and other stakeholders.
As per Clause 49 of the listing agreement between the company and the stock exchange, one-third of the board members should be independent directors provided the company is headed by a non-executive chairman.
In case the board is headed by an executive chairman, at least half of the board should comprise independent directors.
"Out of 47 listed government companies, the boards of 17 companies did not have the required number of independent directors," said Comptroller and Auditor General (CAG) report.
more at:
http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/IOC-BHEL-SAIL-do-not-have-required-independent-directorsCAG/articleshow/7078037.cms
Looking at Congo, Nigeria and Indonesia for new orders: BP Rao, CMD, BHEL
BP Rao , CMD, BHEL in an interview with ET Now talks about the expansion plans and the setting up of the proposed NBFC as well as acquisition opportunities.
The company is going to expand capacity to about 20 gigawatts till about March 2012 and will incur a capex of about 1600 crore as well. What is the progress in terms of implementation and the money that you have spent up until now?
For this all the equipment has been already ordered and the equipment will start arriving from the middle of next year. In the last 6 months that is from September to March it will get commissioned. So by March we will have the 20,000 megawatt. Now this whole thing will cost around 1600 crore. That is the investment we expect to spend on this and most of the cash flow will happen next year on this.
more at :
http://economictimes.indiatimes.com/opinion/interviews/Looking-at-Congo-Nigeria-and-Indonesia-for-new-orders-BP-Rao-CMD-BHEL/articleshow/7070692.cms
The company is going to expand capacity to about 20 gigawatts till about March 2012 and will incur a capex of about 1600 crore as well. What is the progress in terms of implementation and the money that you have spent up until now?
For this all the equipment has been already ordered and the equipment will start arriving from the middle of next year. In the last 6 months that is from September to March it will get commissioned. So by March we will have the 20,000 megawatt. Now this whole thing will cost around 1600 crore. That is the investment we expect to spend on this and most of the cash flow will happen next year on this.
more at :
http://economictimes.indiatimes.com/opinion/interviews/Looking-at-Congo-Nigeria-and-Indonesia-for-new-orders-BP-Rao-CMD-BHEL/articleshow/7070692.cms
Thursday, December 9, 2010
Bhel board approves plan to set up NBFC
The board of state-run Bharat Heavy Electricals Ltd (Bhel) board has approved the company’s plan of starting a non-banking financial company (NBFC) to finance power projects, said B.S. Meena, secretary, department of heavy industries (DHI).
Bhel had a net profit of Rs.4,287 crore on a revenue of Rs.34,050 crore in the 2010 fiscal, and has a cash surplus of Rs.10,000 crore. Bhel plans to apply for a licence from the Reserve Bank of India.
“The company will primarily play a role of facilitator to Bhel, but it will be open to everybody. This NBFC will lend to state electricity boards and others to buy power generation equipment from Bhel,” said Meena.
The 11th Plan (2007-12) has set a target of adding 78,577MW of power generation capacity, requiring at current estimates, some Rs.10.31 trillion of investment. According to the power ministry, the government expects a Rs.4.51 trillion funding shortfall. With the funding ability of Indian institutions being stretched, adding capacity hinges on the ability to mobilize debt.
more:
http://www.livemint.com/2010/12/09234358/Bhel-board-approves-plan-to-se.html?atype=tp
Bhel had a net profit of Rs.4,287 crore on a revenue of Rs.34,050 crore in the 2010 fiscal, and has a cash surplus of Rs.10,000 crore. Bhel plans to apply for a licence from the Reserve Bank of India.
“The company will primarily play a role of facilitator to Bhel, but it will be open to everybody. This NBFC will lend to state electricity boards and others to buy power generation equipment from Bhel,” said Meena.
The 11th Plan (2007-12) has set a target of adding 78,577MW of power generation capacity, requiring at current estimates, some Rs.10.31 trillion of investment. According to the power ministry, the government expects a Rs.4.51 trillion funding shortfall. With the funding ability of Indian institutions being stretched, adding capacity hinges on the ability to mobilize debt.
more:
http://www.livemint.com/2010/12/09234358/Bhel-board-approves-plan-to-se.html?atype=tp
Tuesday, December 7, 2010
BHEL adopts strategy to venture into newer areas
Bharat Heavy Electricals Ltd (BHEL), the country's biggest power equipment company, has adopted a policy of forming joint ventures and concluding technical tie-ups for venturing into newer areas of business.
While parking of surplus funds in productive activities is one driver for the approach, attention on diversification and risk sharing seems to be the theme behind all such collaborations.
The company has a cash surplus of Rs 10,000 crore. It has floated joint ventures (JVs) and technical tie-ups or started preliminary exercises for entry into nuclear equipment, wind energy, specialised grade steel, transmission, transportation and water treatment businesses.
It has also adopted the collaboration route for its traditional power business. It has set up JVs with NTPC and the governments of Karnataka, Tamil Nadu, Madhya Pradesh and Maharashtra. The ones with the state governments are for power generation.
In another six months, the company will see some of its JVs taking concrete shape. "We are starting all these ventures, including a non-banking finance company, because we want to put our extra resources into productive use. If we put these resources in banks, it will give low returns," B P Rao, chairman and managing director, told Business Standard.
ref:
http://www.business-standard.com/india/news/bhel-adopts-strategy-to-venture-into-newer-areas/417525/
While parking of surplus funds in productive activities is one driver for the approach, attention on diversification and risk sharing seems to be the theme behind all such collaborations.
The company has a cash surplus of Rs 10,000 crore. It has floated joint ventures (JVs) and technical tie-ups or started preliminary exercises for entry into nuclear equipment, wind energy, specialised grade steel, transmission, transportation and water treatment businesses.
It has also adopted the collaboration route for its traditional power business. It has set up JVs with NTPC and the governments of Karnataka, Tamil Nadu, Madhya Pradesh and Maharashtra. The ones with the state governments are for power generation.
In another six months, the company will see some of its JVs taking concrete shape. "We are starting all these ventures, including a non-banking finance company, because we want to put our extra resources into productive use. If we put these resources in banks, it will give low returns," B P Rao, chairman and managing director, told Business Standard.
ref:
http://www.business-standard.com/india/news/bhel-adopts-strategy-to-venture-into-newer-areas/417525/
Monday, December 6, 2010
Cabinet nod for BHEL-NPCIL venture soon
The joint venture of Bharat Heavy Electricals Ltd with Nuclear Power Corporation of India Ltd (NPCIL) is likely to be approved by the Union cabinet soon.
The new company is to provide engineering, procurement and construction services in the nuclear power sector. The memorandum of understanding to set it up was signed in April 2008.
There will be a third partner, France’s Alstom. Each of the three are expected to hold 33 per cent equity stake. BHEL, the power equipment maker, already has a tie-up with Alstom for its boiler business.
more at:
http://www.business-standard.com/india/news/cabinet-nod-for-bhel-npcil-venture-soon/417286/
The new company is to provide engineering, procurement and construction services in the nuclear power sector. The memorandum of understanding to set it up was signed in April 2008.
There will be a third partner, France’s Alstom. Each of the three are expected to hold 33 per cent equity stake. BHEL, the power equipment maker, already has a tie-up with Alstom for its boiler business.
more at:
http://www.business-standard.com/india/news/cabinet-nod-for-bhel-npcil-venture-soon/417286/
Wednesday, December 1, 2010
Bhel bags Rs2,665 cr order from Chattisgarh
Bhel has bagged a Rs2,665 crore order for supply and installation of a 2x600-MW thermal power plant in Raigarh in Chattisgarh.
The order by Visa Power Ltd, an Independent Power Producer (IPP), includes design, engineering, manufacture, supply, erection, testing and commissioning of boilers, steam turbines and generators, along with controls and instrumentation besides associated auxiliaries.
A Bhel press release said the PSU has so far secured orders for 19 of the relatively newer rated 600-MW sets.
It added that orders from IPPs accounted for a record 90% of total orders for 16,489-MW power plant equipment booked by Bhel in the last fiscal.
ref:
http://www.livemint.com/2010/12/01141917/Bhel-bags-Rs2665-cr-order-fro.html
The order by Visa Power Ltd, an Independent Power Producer (IPP), includes design, engineering, manufacture, supply, erection, testing and commissioning of boilers, steam turbines and generators, along with controls and instrumentation besides associated auxiliaries.
A Bhel press release said the PSU has so far secured orders for 19 of the relatively newer rated 600-MW sets.
It added that orders from IPPs accounted for a record 90% of total orders for 16,489-MW power plant equipment booked by Bhel in the last fiscal.
ref:
http://www.livemint.com/2010/12/01141917/Bhel-bags-Rs2665-cr-order-fro.html
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