On November 9, shares of Bharat Heavy Electricals Limited (BHEL) saw a decline of over 1 percent in trading following disappointing Q2 financial results. At 11:39 am, the BHEL stock was trading at Rs 124.57 on the National Stock Exchange (NSE).
The state-owned engineering firm, Bharat Heavy Electricals Ltd (BHEL), reported a consolidated net loss of Rs 238.12 crore for the second quarter of the fiscal year 2023-24. This marked a significant contrast to the profit of Rs 12.10 crore achieved in the same period of the previous year, as per a BSE filing.
The total income for the quarter dipped to Rs 5,305.38 crore from Rs 5,418.74 crore in the corresponding period of the previous year. It’s worth noting that the company had also reported a consolidated net loss of Rs 343.89 crore in the April-June period of this fiscal year.
BHEL Stock Assessment: Brokerage Opinions
Brokerage firm Prabhudas Lilladher, in its initial assessment following the results, has assigned a ‘reduce’ rating to BHEL stock. Amit Anwani, Research Analyst at Prabhudas Lilladher, mentioned in the report that “BHEL’s Q2FY24 performance has been dismal and below estimates on all fronts.”
The report further added that “the stock is currently trading at 49.4x/28.1x FY24/25E, and we have a ‘reduce’ rating.
BHEL Stock Performance
Over the last six months, BHEL stock has yielded a return of 57.68 percent. In comparison, the benchmark Nifty50 index has provided a return of 6.45 percent during the same period.
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