Monday, October 20, 2008

Bhel tanks 26% in four days

Bharat Heavy Electricals lost 8.23% to Rs 1096.45 at 15:18 IST on BSE on recent reports that rise in raw material cost may hurt margins in the year ending March 2009.
The stock has lost 26.29% in four trading days from Rs 1487.70 on 14 October 2008 after the company’s Chairman K. Ravi Kumar on 15 October 2008 in an interview to a business news channel told there will be some pressure on margins in the year ended March 2009 as raw material costs are expected to increase by 1%.
The stock hit a 52-week low of Rs 1086.30 in intra-day trade. It hit a high of Rs 1242 so far during the day. The stock has a 52-week high of Rs 2925 on 7 November 2007.
The company’s current equity is Rs 489.52 crore. Face value per share is Rs 10.
The current price of Rs 1096.45 discounts Q1 June 2008 annualized EPS of Rs 31.41, a PE multiple of 34.90.
The Bharat Heavy Electricals (Bhel) chairman, however, said the company is confident of achieving 30% growth in revenues in the current financial year. The company will announce its Q2 September 2008 results on 24 October 2008.
The company had reported 33.1% rise in net profit to Rs 384.41 crore on 33.9% increase in net sales to Rs 4329.24 crore in Q1 June 2008 over Q1 June 2007.
Bhel is engaged in manufacturing and distributing electrical, electronic, and mechanical and nuclear power equipment.

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