BHEL plunges to lowest level since late October 2008

The share price of BHEL was down almost 4% in trade today and was seen changing hands at Rs 216.55 on the BSE. The stock has not seen this level since October 28, 2008, when the stock hit almost Rs 196.

BHEL has lost heavy ground on concerns of a weakening order book flow. The company depends on the power sector for a steady order book and the power sector itself has been plagued with numerous problems.

For the fiscal year ended March 31, 2012, the company’s order inflows totaled just Rs. 22,096 crore, down 63.4% from the previous year. BHEL is increasingly facing competition from Chinese and Korean players. Apart from this there has been competition from domestic players which has compounded the woes of the company. Hopes of recovery in the near to medium term look bleak, which is why there is a lot unwinding in the stock.

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