Brokerage house ICICI Securities says that in the wake of the current energy crisis, the company’s margins are expected to increase in the coming quarters. This will increase the profit of the company. But there are some risk factors, such as delays in order execution and rising raw material prices.
Further increase in profit is expected
The brokerage house says that despite challenges related to Covid-19, BHEL has performed well in FY2022. Implementation has improved. Orders in FY22 grew by 76 percent year-on-year to Rs 23,600 crore. By FY 2022, the total order book has reached 1 lakh crores.
Given the strong financial position of the company, the brokerage has assigned a target of Rs 100 for investment in the stock. It could be 70 percent stronger from the current price of Rs 59. The target for the first share was Rs 76.