I am not putting finacial analysis of BHEL as it is widely tracked and available.

This company has had virtual monopoly in BTG segment. Its monopoly was only threatened by cheap Chinese imports. Only recently L&T has scaled up to cater to this segment.

But this should send strong message to those companies relying on cheap Chinese substitute.

http://economictimes.indiatimes.com/news/news-by-industry/energy/power/Chinese-equipment-stalls-Durgapur-Power-plant-seeks-BHEL-help/articleshow/6496995.cms

This should help BHEL's credentials.

Another reason to worry is lot of utilities and other comapnies are using Chinese equipment. They have had high valuations based on MW of installed/future capacities.

Imagine a powerplant not running for a year for want of a turbine. All financial calcuations/returns will go for a toss.

I guess BHEL will continue to see un-interrupted growth for a decade. Their venturing into solar energy, nuclear energy,super critical technology and BOP will only add to the growth of core BTG business.

Edited by nav_1996 - 05/Sep/2010 at 2:13pm

Done Sir.

Hahaha the company is just too good. its really impossible to buy it when the markets are doing so well! the 52-week range is only about 700 rupees.

not just a bluechip but also a near-monopoly in some segments!