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This article is more than 1 year old.

Citi downgrades BHEL to Sell; stock price tanks over 9%

Mini

Shares of Bharat Heavy Electricals (BHEL) share price tanked 9.5 percent on Tuesday after global research house Citi downgraded the stock to Sell from Neutral with a target at Rs 34 per share.

Citi downgrades BHEL to Sell; stock price tanks over 9%
Shares of Bharat Heavy Electricals (BHEL) tanked 9.5 percent on Tuesday after global research house Citi downgraded the stock to Sell from Neutral with a target at Rs 34 per share.
The stock declined 9.5 percent to hit an intraday low of Rs 38.50 per share in the BSE. The stock price has surged over 118 percent from its 52-week low of Rs 19.20 hit on March 25, 2020. At 11:05 am, shares were trading 8.5 percent lower at Rs 38.90 as against a 1.6 percent fall on Sensex.
According to Citi, after a recent sharp rally, BHEL is trading at ~0.5x P/BV which appears unappealing given 4 percent RoE and risks to cash flows and profits.
It said that the high receivables continue to pressure the cash flows, while success in new areas will take time.
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