InvestorQ : Why did BHEL report a loss for the June quarter and what to do with the stock? Should I hold on or exit the stock which I bought around the current market price?
sara Kunju made post

Why did BHEL report a loss for the June quarter and what to do with the stock? Should I hold on or exit the stock which I bought around the current market price?

Answer
user profile image
1 year ago


You are right that BHEL reported a net loss of Rs.219 crore for the June quarter as compared to a profit of Rs40 crore in the June quarter last year. Even in terms of total revenues, the company saw nearly 25% fall in revenues to Rs.4673 crore, with the biggest fall in revenues coming from the power segment where the pressure on demand was the most. Even the industrials segment performed very badly. Basically, there was little by way of investments or by way of replenishments that power companies were doing and that took its toll on the numbers of BHEL.

As far as the stock is concerned, since you have bought the stock around the current price, you should ideally get rid of the stock at this point of time. There is little in the stock by way of sales and profit growth outlook and the sharp fall in sales by 25% is not a good sign as it shows virtual slowdown in the consumption sector. If you want to really buy a power stock, then NTPC would be a much better choice for you.