Tuesday, July 8, 2008

Investment Idea: BHEL

Bharat Heavy Electricals Ltd or BHEL as it is recognised, is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago, manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian economy. It has 14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight service centres and 18 regional offices, and its employee strength is 42,600.
The company has posted a good performance for the year ended 31st March 2008. Its net sales rose by 12.34% at Rs.19,365.46 crore. Its mainstay continues to be the power sector, 80% of its turnover comes from this sector alone, the rest from the other industries. What is interesting to note is that in FY08, 14% of the total turnover came through commercialization of products and systems developed by way of in-house R&D efforts.
Significantly, during the year, BHEL spent over Rs.464 crore on R&D, which is 83% more than the previous year’s 68%. Infact, the R&D spend at 2.14% of the turnover, is among the highest in India in its kind of industry. Another notable achievement of FY08 has been the significant growth in Intellectual Capital with around one Patent/Copyright filed every alternate working day. It filed 175 patents and copyrights during the year, enhancing the company’s intellectual capital to 664 patents and copyrights filed.
The company’s PBT rose 18.58% at Rs.4,430.39 crore and PAT was up 18.41% at Rs.2,859.34 crore. Its equity capital doubled up from Rs.244.76 crore to Rs.489.52 crore in FY08 on account of the 1:1 bonus. EPS for the year was at Rs.58.41.
Power is its mainstay and with the current emphasis, which the Govt has laid in power sector growth, naturally, BHEL would be one of the biggest beneficiaries, what with the number of mega-power projects being created. If one looks at the turnover, it becomes apparent that the company is working at full capacity and for it to now reach a higher level, it will have to expand. Otherwise, its growth will be restricted.
All said and done, BHEL is a good buy at the current rate, if you have a 2-3 years horizon in mind.
Source: sptulsian.com

Markets Today

Market Snapshot
Markets remain volatile as Left withdraws support; recover from the day's lows
Political fallout on expected lines; markets react with a positive bias to developments
Sensex down 176 pts at 13350; recovers 300 pts from the day's low
Nifty down 42 pts at 3989; recovers 90 pts from the day's lows
CNX Midcap ends flat; BSE Small Cap Index down 0.5%
Reliance Industries down 2.5%; closes below 2000 for the first time since Aug 2007
BSE Cap Goods Index recovers nearly 5% from days low on hope of nuclear deal going through
BEL up 4.6%; BHEL up 2.1%; ABB up 1.8%; L&T up 1.5%
Nuclear deal benificiaries: Alstom Projects up 7.5%, Rolta up 5.8%, Areva T&D up 5.5%
SBI recovers nearly 10% from days low as the co seeks RBI nod to mark-to-mkt only 25% of Rs 9996 cr of govt bonds: Sources
BSE IT Index down 3.1%; Wipro down 5%; Infosys down 3.5%; Satyam down 2.9%; TCS down 2.6%
BSE Oil and Gas index down 1.6%; Relaince down 2.4% ONGC down 1.7%
OMC's gain; HPCL up 5.8%; BPCL up 5.6%; IOC up 1%
NSE Advance Decline at 1 : 1.5
Total F&O turnover at Rs 41112 cr Vs Rs 44635 cr
Total market turnover at Rs 56817 cr Vs Rs 61829 cr yesterday
F&O Snapshot
Nifty fut sees additional short build up; adds 27.9 lakh shares
Discount remains at nearly 50 points in today's trade
IT stocks like Infy & Satyam sees fresh short build up
Sugar Stocks like Renuka Sug, Bajaj Hind & Balrampur Chini sees continuation of short build up
NSE f&o volumes on lower side; turnover at Rs 41117.91cr vs 44634.29 on yesterday
Options Activity: Nifty 3700 put adds 3.3 lakh shares Nifty 4300 call sheds 3.8 lakh shares Nifty 4100 put sheds 2.6 lakh shares
Star Trade: Rolta up 6%; adds 1.1 lakh shares
Fresh Short: Renuka dn 6.1%; adds 10.1 lakh shares Wipro dn 5.7 %; adds 4.2 lakh shares Infosys dn 3.4%; adds 4 lakh shares ITC dn 3%; adds 13.8 lakh shares
Fresh Longs: JP hydro up 3.9%; adds 12.1 lakh shares Chambal fert up 4.4%; adds 7.6 lakh shares RNRL up 3.4%; adds 20.4 lakh shares SBI up 3.4%; adds 5.3 lakh shares
Source: moneycontrol.com

Intraday trading Calls for 8th July

Market may open weak but recovery expected in mid session and remains flat to nagetive. A nagetive closing expected today.

Today's Intraday Stock Tips/ Trading Calls:

ESSAR OIL
CAIRN INDIA
SASKEN COMMUNICAION
INIDABULLS REALEST
ADLABS FILMS
RPL

For Levels and Targets CLICK HERE.

Watch List: SmallCap & Midcap IT Sector: Core Projects, Vakarangee Softwares, Prithvi Info, 3i Infotech, Mphasis BFL etc.

Good Luck

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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