BHEL’s numbers for Q3 weren’t exactly setting the market on fire. But it’s possible the market is over-reacting to the numbers.
The stock is down almost 25% in last 15 days - and even if we extrapolate the earnings from yesterday’s announcement, it is still available at a relatively cheap 20x earnings. Not bad for a profitable company with negligible debt, and sitting on humongous land holdings that can be monetized in current environment.
The company is making a transition to be a modern player in Electricals, investing in capabilities including solar.
It is one of the biggest beneficiaries of the National Infrastructure Pipeline of $1.4 Trillion, because power constitutes lion’s share of that initiative.
The thing about markets is that sometimes the bad news is the best news - because it throws up excellent bargains. BHEL at 36 is very likely one of them.
The stock is down almost 25% in last 15 days - and even if we extrapolate the earnings from yesterday’s announcement, it is still available at a relatively cheap 20x earnings. Not bad for a profitable company with negligible debt, and sitting on humongous land holdings that can be monetized in current environment.
The company is making a transition to be a modern player in Electricals, investing in capabilities including solar.
It is one of the biggest beneficiaries of the National Infrastructure Pipeline of $1.4 Trillion, because power constitutes lion’s share of that initiative.
The thing about markets is that sometimes the bad news is the best news - because it throws up excellent bargains. BHEL at 36 is very likely one of them.