BHEL share price fell nearly 2% today after the state-owned engineering firm firm reported Rs 552.38 crore loss in Q2 of current fiscal. Share price of BHEL declined 1.78% to Rs 27.45 against previous close of Rs 27.95 on BSE.
BHEL share stands higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
The share has lost 48% in one year and fallen 35.1% since the beginning of this year. Total 32.20 lakh shares changed hands amounting to turnover of Rs 8.97 crore on BSE. Market cap of the firm rose to Rs 9819 crore on BSE. BHEL reported a consolidated net loss of Rs 552.38 crore in the September quarter, mainly due to lower revenues.
The company logged a consolidated net profit of Rs 120.95 crore in the quarter ended on September 30, 2019.
Total income fell to Rs 3,793.13 crore in Q2 against Rs 6,359. 68 crore in the same period a year ago.
As per the filing, the group operations during the quarter continued to be impacted by measures to contain the COVID-19 pandemic.
Execution of projects gathered momentum, though recovery has been gradual and partial.
Accordingly, the results for the quarter are not comparable with those for the previous quarter and corresponding quarter of the previous year, the firm said.
Motilal Oswal kept its target price of Rs 116 unchanged and maintained buy call on the stock post Q2 earnings.
"Bharat Electronics 2QFY21 earnings were 23% higher than our estimates, with revenue beat of 15%. While EBITDA was 25% higher than our estimates, the EBITDA margin came in lower due to a miss on gross margins. We forecast revenue/EBITDA/PAT CAGR of 10%/6%/6% over FY20-23E. We have built in a sufficient margin cushion as we assume an EBITDA margin of 18.6% by FY22E/FY23E (v/s 21.1% reported in FY20)."