BHEL share fell over 8% in early trade today after the state-run energy firm reported a net loss of Rs 218 crore in Q3 against Rs 161.81 crore profit for the quarter ended on December 31, 2019. BHEL share lost 8.5% to Rs 39.85 against previous close of Rs 43.55 on BSE.
The stock has fallen after 5 days of consecutive gain. It opened with a loss of 5.74% today. BHEL share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 1.63% in one year and risen 12.67% since the beginning of this year. Market cap of the firm fell to Rs 14,067 crore. Total income of the state-run engineering firm dipped to Rs 4,532.39 crore in Q3 from Rs 5,827.74 crore in the same period a year ago. About the impact of pandemic, the company said,
"During the quarter, the group operations recovered as compared to Q2/20-21 (second quarter this fiscal), but pre-COVID level of operations are yet to be achieved.
Based on its assessment of business/economic conditions as on date, the company expects to recover the carrying value of its assets," it added.
Nomura has given a reduce call on the BHEL stock and said 3QFY21 results have come below consensus estimates at all levels. EBITDA are in losses on weaker gross margins and slower than expected pick-up in execution. The brokerage has a target price of Rs 25 on the stock.
Goldman Sachs said weak execution for the firm continues and recovery is still not in sight. The brokerage gave a sell call on the stock with a target price of Rs 25.