BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Bharat Heavy Electricals Ltd. during FY22 witnessed improvement in execution as most Covid-related challenges abated. Reduction in fixed costs and reversal of provisions helped Ebitda turn positive at Rs 7.4 billion.
Though the proportion of raw material costs to sales remained elevated at ~72%, we expect the recent softening of commodity prices and higher operating leverage to further enhance profitability.
Order intake in FY22 grew 76% YoY to Rs 236 billion, led by Rs 120 billion from the nuclear segment. Order book as on FY22 stood at ~Rs 1 trillion (4.3 times trailing twelve months sales).
The Central Electricity Authority has recently (in the Draft National Electricity Plan) announced coal-based capacity addition of 43 gigawatt over the coming decade.
This has further strengthened our conviction on the stock as we believe the new coal plants ordering will give BHEL time to ramp up its non-power segments in the coming years.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR