Maintain SELL on BHL on continued losses - JM Financial Institutional Securities Private Limited

We continue to value BHL on 0.60x replacement to arrive at Sept'14 TP of Rs. 10 and maintain our SELL rating given poor profitability and return ratios. We expect BHL to continue to report losses in FY14/15 on significant interest outgo due to investments into/loans to its associate company 'Bajaj Energy Pvt Ltd' (BHL owns 26%, balance owned by Bajaj family).

Source : Equity Bulls

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