homemarket Newsstocks NewsBHEL gets a downgrade from Nomura for being too aggressive Shares drop over 3%

BHEL gets a downgrade from Nomura for being too aggressive - Shares drop over 3%

Interestingly, Nomura had upgraded BHEL in September last year and increased its price target by more than 100 percent to Rs 65 from Rs 27 earlier.

By CNBCTV18.com Jun 6, 2023 10:54:40 AM IST (Published)

2 Min Read

Shares of Bharat Heavy Electricals Ltd. (BHEL) fell over 3 percent on Tuesday after brokerage firm Nomura downgraded the state-run entity to reduce from its earlier rating of neutral. It also slashed its price target on the stock to Rs 61 from Rs 65 earlier.

Interestingly, Nomura had upgraded BHEL in September last year and increased its price target by more than 100 percent to Rs 65 from Rs 27 earlier. Nomura's revised price target on the stock implies a potential downside of 30 percent from Monday's closing levels.

Nomura believes that the recent orders bagged by the company appear to be aggressive and that limit the scope of a recovery in gross margin. BHEL, in a consortium with Titagarh Wagons Ltd., bagged orders worth Rs 23,500 crore for 80 Vande Bharat trains. The company’s scope of work includes electrics and the control systems and the bogies, BHEL told analysts in a conference call.