Things keep getting worse for BHEL; stock plunges to 52 week low

Published: Monday, April 30, 2012, 10:17 [IST]

BHEL, a stock that has always generated keen investor interest, slowly seems to to see that interest waning. The company which has witnessed a sharp slowdown in its order book, has now seen the Rajasthan government scrapping tenders worth Rs 12,000 crore that were bagged by the company more than a year ago.

For the fiscal year ended March 31, 2012, the company’s order inflows totaled just Rs. 22,096 crore, down 63.4% from the previous year. BHEL is increasingly facing competition from Chinese and Korean players. Apart from this there has been competition from domestic players which has compounded the woes of the company.

The company which supplies power equipment among others has been affected on account of slowdown in spending in the power sector and issues like coal availibility in the power sector.

The shares of BHEL have received a severe drubbing over the last few months. The stock which was traded above the Rs 404 mark in May last year, has collapsed to Rs 222, as on April 30, 2012. In fact, the stock today hit a fresh 52 week low on the BSE and according to marketmen, may even fall lower in the coming days.

GoodReturns.in

Story first published: Monday, April 30, 2012, 10:17 [IST]

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