BHEL - Flash Beat, Retain Hold - Emkay

Reco: HOLD
CMP: Rs 183
Target Price: Rs 220

FY13 provisional PAT ahead estimate by 5%, led by lower tax incidence. Highlights (1) Sales Rs500 bn +1% (2) PBT Rs92 bn -11% (3) PAT Rs65 bn -8%. Implied Q4FY13 beat at 10%

Positive surprise – Exceeds targets on order inflows... secures orders worth Rs315 bn (+43%). Order book at Rs1152 bn (-14% yoy and +1% qoq)

Revenues from spares & services grew by 9% to Rs30.2 bn. Bhel commissioned 10.3 GW in FY13 (+12%) – total capacity commissioned by Bhel increases to 115 GW (+7%)

Retain earnings estimates. 25% stock price correction in past one month factors all negatives. Retain Hold rating with price target of Rs220

Source : Equity Bulls

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