Bhel slips on profit booking

Bharat Heavy Electricals lost 2.63% to Rs 155.60 at 12:18 IST on BSE, with the stock sliding on profit booking after yesterday's sharp rally triggered by the company announcing strong Q1 earnings.

Meanwhile, the S&P BSE Sensex was up 44.85 points or 0.16% at 28,971.21.

On BSE, so far 19.57 lakh shares were traded in the counter as against average daily volume of 9.23 lakh shares in the past one quarter. The stock hit a high of Rs 159 and a low of Rs 153.55 so far during the day. The stock had hit a 52-week low of Rs 90.40 on 29 February 2016. The stock had hit a 52-week high of Rs 219.70 on 27 October 2015. The stock had outperformed the market over the past one month till 7 September 2016, surging 16.01% compared with 3.02% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rallying 34% as against Sensex's 7.1% rise.

The large-cap company has equity capital of Rs 489.52 crore. Face value per share is Rs 2.

Shares of Bharat Heavy Electricals (Bhel) had rallied 15.5% to settle at Rs 159.80 yesterday, 7 September 2016, after the company announced strong Q1 June 2016 results during market hours. The company's net profit jumped 54.2% to Rs 77.77 crore on 29% growth in net sales to Rs 5522.76 crore in Q1 June 2016 over Q1 June 2015.

In a post-result conference call held yesterday, 7 September 2016, Bhel said that the company's sales growth in Q1 June 2016 is largely due to focus on expeditious execution of the orders on hand rather than any one off item.

Bhel's order inflow in Q1 June 2016 stood at Rs 3223 crore with about Rs 2307 crore accounted by power sector and balance by industry and international. The company's order backlog stood at Rs 1.08 lakh crore as on 30 June 2016.

Of the Rs 50000 crore of order book branded as slow moving orders, three projects worth Rs 30000 crore are awaiting clearance and expect to commence work in next 3-4 months, Bhel said.

Bhel said that the financial closure for the Bangladesh Power project is expected to be achieved in October 2016 and post that the company will account the order of about Rs 10000 crore in its books of accounts.

State-run Bhel is an integrated power plant equipment manufacturer. It is one of the largest engineering and manufacturing companies in India engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for core sectors of the economy, viz. power, transmission, industry, railways, renewable energy, oil & gas, water and defence. The Government of India currently holds 63.06% stake in Bhel (as per the shareholding pattern as on 30 June 2016).

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