BHEL- Portfolio Stock - Long Term View Hey everyone,
I consider NSE:BHEL for my Portfolio stock. Will explain everything why I am considering this stock in my Portfolio and what will be My entry Point.
Key Factors
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1- BHEL has offered partnerships at its 16 manufacturing facilities across the country
2-Company has 14000 acres land parcels at different towns and cities in India. Taking conservative per acre land price at Rs 50 lakhs, the land value is pegged at Rs. 7000 Cr. Further, company has Rs. 5000 Cr cash. So total value of land + cash is Rs. 12000 Cr. Currently company market cap at Rs. 7700 Cr.
3-BHEL has floated an expression of interest form foreign companies to use its idle facilities to set up manufacturing of electrical equipment, solar modules, lithium ion cells, transportation equipment, LCD panels. Can be a big beneficiary of companies looking to diversify manufacturing from China post covid 19.
4-BHEL has mainly fallen due to fall in sales and increase in inventory and trade receivables.
5-BHEL stock has declined 66 per cent in the past one year due to weak power demand, delay in new orders and deteriorating receivables position. The stock offers an attractive risk-reward profile with its current market cap at Rs 8,300 crore against FY19 cash and cash equivalent of Rs 7,503 crore. The stock, with a dividend yield of 8.5 per cent, is currently trading at 0.3 times its book value. Considering its net assets of Rs 35,810 crore as on FY19 and outstanding shares of Rs 348 crore,
Fundamental View
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Technical View
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BHEL strongest support and demand zone is near about 8-12 rupees. There is lot of confirmation on this price and this is the best price we can get in Upcoming years. We should need to consider a long position from this price.
