BHEL - (CMP/TP: Rs. 176/-) (Rating: Neutral) - Angel Broking

We expect BHEL to post an 11% yoy decline in top-line to Rs. 9,096cr for 3QFY2014 due to execution delays (on account of delay in payments by clients as well as delay in obtaining the necessary clearances). On the EBITDA front, the company's margin is expected to contract by 519bp yoy to 10.8%. Consequently, we expect PAT to decline sharply by 40% yoy to Rs. 709cr. We maintain our Neutral recommendation on the stock as declining order backlog limits revenue visibility for BHEL.

Source : Equity Bulls

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