Motilal Oswal - Bharat Heavy Electricals Limited (BHEL) MOSL: BHEL (Neutral)-Weak Power sector execution impacts performance

Report

Motilal Oswal

EUR 120.00 For Business Accounts Only

MOSL: BHEL (Neutral)-Weak Power sector execution impacts performance

BHEL: Weak Power sector execution impacts performance

(BHEL IN, Mkt Cap USD2.8b, CMP INR57, TP INR62, 9% Upside, Neutral)

Weak execution leads to loss at EBITDA level: 1QFY20 sales declined 24% YoY to INR45b (v/s est. of INR63.7b), led by (a) land availability constraints, (b) delay in receiving customer clearances, and (c) delay in receiving imported equipment from vendors. Operating loss stood at INR2.7b (v/s est. of INR3b profit), which was caused by operating deleverage. Depreciation was down 35% at INR1.1b (v/s INR1.7b in 1QFY19) as company has revised useful life of assets. Net loss stood at INR2.2b (v/s est. of INR1.6b profit).
Power segment slips into losses: Power sales (79% of sales) declined 25% YoY to INR35b, while Industrial sales (21% of sales) declined 20% YoY to INR9.2b. EBIT margins declined 12pp/1.3pp YoY to -1.6%/4% in Power/Industrial. Losses in the Power segment were due to weak execution.
Order backlog at INR1.1t, inflow down 11% YoY to INR39b: Order book stood at INR1.1t (-8.0% YoY). Order inflow stood at INR39b (-11% YoY) in 1QFY20. We build in order inflow of INR336b for FY20.

13/08/2019 1 EN

Underlying

Bharat Heavy Electricals Limited

Bharat Heavy Electricals is an integrated power plant equipment manufacturer in India engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railway), Renewable Energy, Oil & Gas and Defense with over 180 products offerings to meet the needs of these sectors. Co. operates through Power and Industry segments.

See profile

INE257A01026 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Other Reports on these Companies

Vermilion Research

Vermilion Int'l Compass: Global Equity Strategy

MSCI ACWI Coiling Under All-Time Highs We remain near-term bullish since our 4/22/25 Compass, we continue to believe the SPX and MSCI ACWI (ACWI-US) likely bottomed at 4800-4820 and $101-$102 (May 13, 2025 Int'l Macro Vision), and our intermediate-term outlook remains bullish as well (5/14/25 Compass). We will maintain our bullish view as long as market dynamics remain healthy and the SPX and ACWI-US are above 5500 and $115. We just discussed in last week's Int'l Compass (May 22, 2025) how we would be buyers on pullbacks to these levels, but that it is no guarantee that they get revisited. We...

EUR 42.57

May 30, 2025 May 30, 2025 1 EN

TheScreener

BHARAT HEAVY ELS. increases its risk exposure and slightly lowers to Neutral

BHARAT HEAVY ELS. (IN), a company active in the Industrial Machinery industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date February 22, 2022, the closing price was INR 49.45 and its expected value was estimated at INR 57.94.

Free Trial

February 23, 2022 February 23, 2022 1 EN

Motilal Oswal

MOSL: BHEL (Sell)-Operating losses continue as the recovery prolongs

BHEL: Operating losses continue as the recovery prolongs (BHEL IN, Mkt Cap USD3.4b, CMP INR72, TP INR45, 38% Downside, Sell) Working capital remains at elevated levels BHEL reported another loss making 2QFY22. While revenue stood ~10% above our expectation, lack of operating leverage led to losses at the operating level. It reported a net loss of INR675m, below our expected loss of INR2.3b, owing to lower other expenses (reversal of provisions ~INR1.8b) and revaluation of depreciation charges by ~INR580m. Adjusted for the above two items, losses are in line with our expectation. Of th...

EUR 120.00

November 10, 2021 November 10, 2021 10 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: BHEL (Neutral)-Weak Power sector execution impacts performance

Vermilion Int'l Compass: Global Equity Strategy

BHARAT HEAVY ELS. increases its risk exposure and slightly lowers to Neutral

MOSL: BHEL (Sell)-Operating losses continue as the recovery prolongs

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe