Avoid BHEL, advises Nischal Maheshwari

Aug 29, 2013, 06.13 PM IST

Nischal Maheshwari of Edelweiss Financial Services recommends avoiding Bharat Heavy Electricals (BHEL) at current prices.

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Nischal Maheshwari of Edelweiss Financial Services recommends avoiding Bharat Heavy Electricals (BHEL) at current prices.

Like this story, share it with millions of investors on M3

Avoid BHEL, advises Nischal Maheshwari

Nischal Maheshwari of Edelweiss Financial Services recommends avoiding Bharat Heavy Electricals (BHEL) at current prices.

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Nischal Maheshwari of Edelweiss Financial Services told CNBC-TV18, "I still don't believe that the business has turned around for Bharat Heavy Electricals (BHEL). Last quarter also a lot of orders were cancelled for BHEL which they have been holing into their book. The margins dropped dramatically much more than the market was expecting."

"Problem with BHEL is that they have got a large fixed cost and if one does not have a topline happening then the problem starts. We do not see visibility as far as the strong topline is concerned. So, it is best to avoid BHEL at these prices also," he said.

The share touched its 52-week high Rs 272.45 and 52-week low Rs 100.35 on 05 October, 2012 and 20 August, 2013, respectively. Currently, it is trading 56.87 percent below its 52-week high and 17.09 percent above its 52-week low. Market capitalisation stands at Rs 28,759.30 crore.

Harmonis Hubungan