Sharemasterindia.com: BHEL shares fell sharply on Friday after the power equipment manufacturer reported an 82 per cent fall in its net profit in the first quarter.
BHEL shares fell over 11 per cent at their day's low of Rs 250.25. BHEL said that its net profit fell to 34 crore in the quarter ended June 30, 2015, as compared to Rs 193 crore in the same quarter of the previous year.
Total income during the quarter fell to Rs 4,854 crore in the June quarter as compared to Rs 5,502 crore in the year-ago period.
Tarang Bhanushali, AVP of research at AVP-Research, said that BHEL earnings were below expectations and the miss on topline has led to underperformance on all fronts.
BHEL posted an operating loss of Rs 451 crore during the June quarter. Being a public sector company, BHEL's cost base remains high, Mr Bhanushalie added. Its other income rose in the June quarter rose to Rs 492 crore against Rs 347 crore during year-ago period.
Avinnash Gorakssakar, head of research at Precision Investment Services, attributed the sharp fall in BHEL shares to weak earnings and the run-up in stocks. BHEL shares were up over 20 per cent in the past three months.
However, he said that with nearly 10 per cent correction in the BHEL shares, the downside from current levels looks limited. But upside is also likely to remain capped, he added.
No comments:
Post a Comment