Following their Q4 results, there were divergent reactions for BHEL and BEML. BHEL has seen good 43 percent growth in its revenue. However, there has been below expected performance when it comes to operations. It reported an EBITDA loss of nearly Rs 1,268 crore against an expectation of gain and consequently net loss of Rs 1,035 crore against expectations of Rs 410 crore profit.
There has been disappointment across brokerages for BHEL. CLSA has a 'sell' with a price target of Rs 40 and they have also cut their EPS by as much as 7 percent.
Goldman Sachs also has a 'sell' on BHEL with a price target of Rs 23, that is a sharp cut in price target and they expect no profits in FY22.
For BEML, it has been a relatively stable quarter, a good 66 percent growth, EBITDA margin contracted and consequently net profits down by as much as 14 percent.
NITI Aayog and Department of Investment and Public Asset Management (DIPAM) have concurred on the divestment and de-merger of surplus land assets and this is in accordance with the strategic disinvestment process.
CNBC-TV18’s Agam Vakil has key highlights on BHEL and BEML.
(Edited by : Bivekananda Biswas)