Buy Calls: An investment can be considered in BHEL
An investment can be considered in the stock of Bharat Heavy Electricals (BHEL). Strong order-book, ongoing capacity expansion to meet Twelfth Plan target, entry into new business segments and efforts to tackle competition in the super-critical plants are factors that enhance prospects for earnings growth over the medium term. However, given the near-term capacity constraints, order book growth could slow down over the next year.
Invest with a perspective of at least three-four years so as ride the growth that the company is likely to witness through enhanced capacities as well as order inflows from newer segments.
At the current market price of Rs 1,879, the stock trades at 22 times the expected earnings for FY09. The current volatility in the market has resulted in valuations that are attractive compared to average historical valuations. Consider buying in lots to benefit from any declines linked to the broad market.
Source: Hindu Business Line
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[...] looking at recommendation of buying BHEL stock for your portfolio, this is one more recommendation. Investors can use recent market declines [...]