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BHEL secures contract from NMDC worth `1,395cr
BHEL has won a contract from NMDC for setting up raw-material handling system (RMHS)
package for its 3mn tonne per annum steel plant at Nagarnar, Chhattisgarh, on a turnkey
basis. The scope of the project includes EPC of the complete RMHS, from receipt of various
raw materials (including coal and iron ore), wagon tippling to crushing.
This order provides fractional support in the challenging environment where order wins
have been dismal for players such as BHEL. With no order wins in the BTG space since the
last quarter, it is evident that the power sector is yet to witness meaningful recovery. Hence,
the attractive valuation of 12.9x FY2012E EPS and 10.9x FY2013E EPS is largely
overshadowed on account of ongoing concerns on the power sector. In addition, the FPO
element will remain an overhang in the near term, thereby providing a limited upside.
Given the long-term structural concerns, we continue to remain Neutral on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
BHEL secures contract from NMDC worth `1,395cr
BHEL has won a contract from NMDC for setting up raw-material handling system (RMHS)
package for its 3mn tonne per annum steel plant at Nagarnar, Chhattisgarh, on a turnkey
basis. The scope of the project includes EPC of the complete RMHS, from receipt of various
raw materials (including coal and iron ore), wagon tippling to crushing.
This order provides fractional support in the challenging environment where order wins
have been dismal for players such as BHEL. With no order wins in the BTG space since the
last quarter, it is evident that the power sector is yet to witness meaningful recovery. Hence,
the attractive valuation of 12.9x FY2012E EPS and 10.9x FY2013E EPS is largely
overshadowed on account of ongoing concerns on the power sector. In addition, the FPO
element will remain an overhang in the near term, thereby providing a limited upside.
Given the long-term structural concerns, we continue to remain Neutral on the stock.
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