Monday, July 6, 2020

BHEL STOCK , BUMPER RETURN , 2 Months 100% Return

   
          
Company 

Bharat Heavy Electricals Limited (BHEL)
 CMP-> 43.40 as on 06 july 2020

BHEL contributed in India development and ready for Make In India initiative of the government.


Company Profile- 

Bharat Heavy Electricals Limited (BHEL) is an leading large  company engage in  engineering and manufacturing . The Company is an built-in electricity plant gear manufacturer, which is engaged in the designing, engineering, manufacturing, constructing, testing, commissioning and servicing a vary of merchandise and offerings for a number of sectors, such as power, transmission, industry, transportation, renewable energy, oil and gas, and defense.

 It operates in two segments: Power and Industry. In its Industry segment, BHEL gives a portfolio of products, structures and offerings for strength plants, energy utilities, oil and gas, metallurgical and mining, and method industries, such as cement, fertilizers, sugar and paper. In its Power segment, BHEL materials steam turbines, generators, boilers and its auxiliaries about 1,000 Megawatt (MW) and of different types according to uses; Supplies hydro mills and mills of about 250MW, and it Manufactures at different scale like 220/235/540/550/700MW nuclear turbine generator sets and many more.


Key Ratios-

BHEL Inventory Turnover ratio is increases continuously from March 2016 from 1.37 to 1.88 in March 2019. Debtor payout ratio decreased from 321 days in march 2016 to 144 days in march 2019.
ROCE% also appreciated  continuously from -2% in march 2016 to 7% in march 2019.






Price Movement

Price of the stock appreciated more than 100% from Rs.20 in March 2020 to Rs 43 on 06 July 2020.





Income Statement--

Since there was a decrease in annual sales of the company from year 2013 to march 2016 . After march 2016 company annual sales gradually going up from 25,505 crore in march 2016 to Rs 30368 crore in march 2019. Operating profit also increased from  -5 % in march 2016 to 7% in march 2019.Similarly company Profit before Tax and EPS also increasing gradually from march 2016 to march 2019





Balance Sheet

Company raised money from the investors in recent years so share capital increased from 490 crore 696 crore in march 2020 . Company reserve capital is gradually decreasing in the recent year a sign of worry and borrowing in recent year also increased to Rs 5023 crore.

Cash Flow

Below is the company cash flow statement indicating income from cash from operation activities ,
cash from investing activity and cash from financial activity.



Company Rating

The rating agency reviewed the capital goods major's rating to 'IND AA' from 'IND AA+' while reaffirming its outlook to 'Negative'. Meanwhile, the rating on short-term facilities of the company has been reiterated at 'IND Al+'.

BHEL's rating has downgrade and negative outlook factors in continued weaker than expected performance in this current year (due to disruption caused by the COVID-19), prospects of subdued order book (unlikely to see a quick turnaround on account of excess capacity in the sector, which is also reflected in continued erosion of margins), persistently high working capital cycle, muted success in diversification, and likelihood of deterioration in the balance sheet strength," BHEL said in a statement.



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