CARE downgrades rating of BHEL

CARE has downgraded the rating on the long-term bank facilities of Bharat Heavy Electricals Ltd. (BHEL) to 'CARE AA' from 'CARE AA+' while reaffirming the outlook to 'Stable'. The rating on the short-term facilities have been reaffirmed at 'CARE A1+'.

The reason for downgrade is due to decline in execution of orders, further aggravated with the outbreak of Covid-19 the effect of which is likely to continue on account of labour migration & logistics issues. The deterioration in operating margins and elongated working capital cycle / increasing contract assets due to the adverse payment terms in orders. High concentration of orders in the thermal power segment that is beset with overcapacity, declining competitiveness and weak financial profile of state utilities.

Shares of BHARAT HEAVY ELECTRICALS LTD. was last trading in BSE at Rs.36.85 as compared to the previous close of Rs. 37.85. The total number of shares traded during the day was 6848079 in over 15399 trades.

The stock hit an intraday high of Rs. 38.85 and intraday low of 36.5. The net turnover during the day was Rs. 256146566.

Source : Equity Bulls

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