Bharat Heavy Electricals Limited (BHEL) has dipped almost 4% to Rs 217, its lowest level since October 2008, in morning trades on the Bombay Stock Exchange. As many as a combined 2.56 million shares have changed hands on the counter so far on both the exchanges.
The stock of the state-owned company has been underperforming the market by declining 21% in past one month, as compared to 2.2% fall in the Sensex.
Analyst at Kotak Securities has forecast revenues of the company to decline by 3% in FY13 to Rs 49,000 crore and the revenue outlook beyond FY13 also appears to be subdued due to likely decline in order backlog.
“BHEL exited FY12 with an order backlog of Rs 1,34,600 crore down 16% y-o-y. Consequently, the revenue visibility has been trending down and currently stands at 31.3 months a sharp decline from its peak of 50 months in FY10," the research firm said in its report dated April 18.
“While BHEL had guided for Rs 67,600 crore in order intake (implying 10% increase in order intake over FY11) in FY12, actual order intake was sharply lower at Rs 22,090 crore," the report suggests.
