Buy BHEL To Achieve Short Term Target Of Rs 2485

Bharat Heavy Electricals LtdShardul Kulkarni of Angel Broking is of the view that investors can buy Bharat Heavy Electricals Ltd (BHEL) stock to achieve a short-term target of Rs 2485.

According to Mr. Kulkarni, the investors will hold the stock with a strict stop loss of Rs 2425.

Today, the shares of the company opened at Rs 2456 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 2585 and a low of Rs 1535 on BSE.

Current EPS & P/E ratio stood at 76.58 and 31.71 respectively.

Eager to increase its incomes outside its primary power equipment business, BHEL is eyeing to have in place four to five JVs by 2010 end in order to drive its railways plans.

The divisions that the company is bracing itself for include diesel and electric locomotives, railways ancillary, electrical multiple units and coaches, comprising those for metro networks coming up in different urban cities.

BHEL, on April 19, has pocketed Rs 63 billion order from Raichur Power Corporation (RPCL) for establishing a 1600 MW (2x800 MW) supercritical thermal power facility in Karnataka.

The order is valued at Rs 63 billion, the biggest-ever order for the company.

The scope of the order includes design, manufacturing, fabrication, supply and commissioning of two coal-fired thermal facilities of 800 MW each having supercritical parameters at Yeramarus in Raichur region of Karnataka.

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