Coming on the heels of L&T's results, markets wednesday had to grapple with plenty of adverse news resulting in the benchmark indices tanking by 2%.. First about the killer. Nikkei started plunging and ended the day with loss of 7.3%. Then there were the results of heavyweights like BHEL, SBI and Tata Steel.
BHEL's results in my opinion was heartening. Though there has been a decrease in NP yoy of about 5.5% , qoq NP has seen a whopping increase from 1182 cr to 3237 cr. which is 2.7 times. Likewise EPS has also seen a phenomenal jump compared to the previous 3 quarters. Now why does this sound so nice. BHEL's price has been going down in relation to the numbers posted by the company. This quarter's jump in NP should come as a surprise and the stock should see some rerating. The company has declared a final dividend of 164% for a total dividend of 270%. The company has been able to add morethan 5000 cr to ita reserves during the fiscal, boasting a reserve of more than 30000 cr. The only problem being faced by the company is on account of the receivables from the State Electricity Boards.. As and when the investment cycle picks up BHEL will give a very good investment return.
So far as Tata Steel is concerned it will continue to be bogged down by it's European operations affecting its consolidated numbers. Present numbers are dismal indeed, wherein it has taken a hit of around 7400 cr as "exceptional item". Subsequent quarter numbers should be more realistic. The company has declared a dividend of 80% demonstrating Managements faith in the company's strength. Technically daily charts show a falling wedge, which is a bullish pattern. Breakout point is around 310/312.
What has happened with the Nikkei today has to be viewed seriously and not just a circuit breaker giving way. Is it likely to affect the US markets ? I will follow up on these in subsequent posts.
Until my next
Happy investing
Basudev
.
BHEL's results in my opinion was heartening. Though there has been a decrease in NP yoy of about 5.5% , qoq NP has seen a whopping increase from 1182 cr to 3237 cr. which is 2.7 times. Likewise EPS has also seen a phenomenal jump compared to the previous 3 quarters. Now why does this sound so nice. BHEL's price has been going down in relation to the numbers posted by the company. This quarter's jump in NP should come as a surprise and the stock should see some rerating. The company has declared a final dividend of 164% for a total dividend of 270%. The company has been able to add morethan 5000 cr to ita reserves during the fiscal, boasting a reserve of more than 30000 cr. The only problem being faced by the company is on account of the receivables from the State Electricity Boards.. As and when the investment cycle picks up BHEL will give a very good investment return.
So far as Tata Steel is concerned it will continue to be bogged down by it's European operations affecting its consolidated numbers. Present numbers are dismal indeed, wherein it has taken a hit of around 7400 cr as "exceptional item". Subsequent quarter numbers should be more realistic. The company has declared a dividend of 80% demonstrating Managements faith in the company's strength. Technically daily charts show a falling wedge, which is a bullish pattern. Breakout point is around 310/312.
What has happened with the Nikkei today has to be viewed seriously and not just a circuit breaker giving way. Is it likely to affect the US markets ? I will follow up on these in subsequent posts.
Until my next
Happy investing
Basudev
.
No comments:
Post a Comment