August 20, 2013
Bharat Heavy Electricals Limited, or BHEL, is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India in terms of turnover. The company was established in 1964, ushering in the indigenous Heavy Electrical Equipment industry in India. BHEL is engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railway), Renewable Energy, Oil & Gas and Defence.
We examine two scenarios (good and bad) while remaining conservative even in the good scenario. We believe we see at the very least an undervaluation of 30% at the current price.