Public sector company Bharat Heavy Electricals Limited (BHEL) reported disappointing FY21 results for the financial year 2020-21 with March quarter. Shares of BHEL fell 20% to its intraday Rs 61.65 in the stock market today on weak FY21 results, while its shares closed at Rs 76.20 on Friday.
However, later its stock position recovered slightly and BHEL shares closed at Rs 67.40 with a fall of 11.55% on NSE. With today’s huge fall, market experts say that there is a possibility of a fall of 55% in the company’s stock right now.
Brokerage firm Motilal Oswal has given a target price of Rs 40 for BHEL stocks. While Kotak Institutional Equities has downgraded its stocks and given its target price of Rs 34.
Brokerage Urm expects its shares to fall further by 55%. While Nirmal Bang has given its target price of Rs 48 giving it a sell rating.
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Let us tell you that the net loss of BHEL has come down to Rs 1036.32 crore in the last quarter of FY21, as compared to Rs 1532.18 crore in the same period a year ago.
BHEL’s revenue has grown tremendously in Q4 of FY21. BHEL’s total income increased to Rs 7245.16 crore in the last quarter of the financial year 2020-21 from only Rs 5166.64 crore in the same quarter a year ago. That is, the company’s revenue has increased by more than 40% in Q4.
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BHEL’s consolidated net loss increased to Rs 2699.70 crore for the full financial year i.e. FY21, while the company had a loss of only Rs 1468.35 crore in FY20. That is, in the year 2020-21, the company’s net loss has increased by 84%.
At the same time, the company’s revenue has decreased by 20% in FY21. The company’s total income in FY20 was Rs 22,027.44 crore which declined to Rs 17,657.11 crore in FY21. The company said that the company’s business has been affected in FY21 due to the lockdown caused by the corona virus.
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