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

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

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

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

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

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

'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