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Stocks

BHEL Early Results, 87.6 EPS for the Year

Bhel announced results yesterday, an early primer into what’s going to come as details later:

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At 36% TTM EPS growth this stock has done fairly well and the current P/E is 27.6, so it seems fairly valued. But the stock seems to have been stuck at the 2400-2500 levels and faces fairly steep resistance here, and volumes are seriously down.

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With a 140,000 cr. order book and a turnover of 35,000 cr. this is a fairly steady stock, but they better ramp up capacity fast or they’ll lose those orders.

This is the first of the big results for last quarter. I expect a very healthy set of numbers – the recovery is truly strong.

  • Anonymous says:

    >Deepak,
    At 28 P/E, you say it is fairly valued. When did you turn a bull?

    MK

  • Deepak Shenoy says:

    >MK: For a company growing at 36% on EPS, 28 is definitely reasonable, but it's not such a bargain for me to go buy it. It's not undervalued, and with that order book, not over valued. If you were an investor for four-five years, this stock should do at least the 12% a year or so. But "reasonably valued" is not a screaming buy and I'm trying to focus on those right now: BHEL may be better for a passive investor.