Its earning season now. All sorts of numbers QonQ, YonY etc will be out in comings days/weeks. Markets are hoping to get some impetus from these to give the markets the direction it needs. Which means marketmen are waiting to see if the markets are going to go up or down from here. It will therefore be necessary to carefully examine these before any further action in the markets.
BHEL today announced flash (tentative) results for YE 31 Mar 2013. YOY ,while there is an insignificant drop in profits (.08%) the order inflow increase is a stupendeous 42.7%. On the receivables form customers front, situation as stated by management is comfortable indicating not much of a problem with cash flow.
Stock Idea: BHEL: As mentioned above we can hold an optimistic view on the company At its current price of Rs. 182, P/E works out to a paltry 6.9. Also to be considered is the fact that the company has recently received a "Maharatna" status from Govt. Such status gives the company far greater autonomy. It appears that invetment cycle will bottom out sooner than later. With that the power sector is bound to get the required boost . And BHEL's stock, which has been battered, will widely outperform. For patient investors it is a very attractive buy at current levels. Technically it has broaken a very important support level of 200. There is no support till 150. The stock might not reach there but it is possible in case there is any sell off owing to any adverse scenario globally or locally.
Stock Idea update: ICICI Bank . I had mentioned that this stock could be bought around Rs 1000 levels and lower.. It sure corrected to this level. Looks like there is more weakness and it could get more attractive.
RECL is showing strength.
Disclosure: I hold BHEL and RECL. Waiting to enter ICICI Bank
Till my next then
Happy Investing
Basudev
BHEL today announced flash (tentative) results for YE 31 Mar 2013. YOY ,while there is an insignificant drop in profits (.08%) the order inflow increase is a stupendeous 42.7%. On the receivables form customers front, situation as stated by management is comfortable indicating not much of a problem with cash flow.
Stock Idea: BHEL: As mentioned above we can hold an optimistic view on the company At its current price of Rs. 182, P/E works out to a paltry 6.9. Also to be considered is the fact that the company has recently received a "Maharatna" status from Govt. Such status gives the company far greater autonomy. It appears that invetment cycle will bottom out sooner than later. With that the power sector is bound to get the required boost . And BHEL's stock, which has been battered, will widely outperform. For patient investors it is a very attractive buy at current levels. Technically it has broaken a very important support level of 200. There is no support till 150. The stock might not reach there but it is possible in case there is any sell off owing to any adverse scenario globally or locally.
Stock Idea update: ICICI Bank . I had mentioned that this stock could be bought around Rs 1000 levels and lower.. It sure corrected to this level. Looks like there is more weakness and it could get more attractive.
RECL is showing strength.
Disclosure: I hold BHEL and RECL. Waiting to enter ICICI Bank
Till my next then
Happy Investing
Basudev
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