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Please refer to important disclosures at the end of this report 1

Quarterly Data (Standalone)(` cr) 4QFY13 4QFY12 % chg (yoy) 3QFY13 % chg (qoq)Revenue 19,204 19,589 (2.0) 10,220 87.9EBITDA 4,651 4,937 (5.8) 1,634 184.6

EBITDA margin (%) 24.2 25.2 (98)bp 16.0 823bp

PAT 3,238 3,380 (4.2) 1,182 173.9Source: Company, Angel Research

Bharat Heavy Electricals Ltd (BHEL)s top-line performance was largely in-line with

our estimates, declining by 2.0% yoy to `19,204cr. Order inflows surprised

positively, coming in at `20,800cr in 4QFY2013 (vs `7,719cr in 4QFY2012 and

`10,739cr in 9MFY2013), primarily due to NTPC bulk orders being booked

during the quarter. However, the total order book declined by 14.7% yoy to

`115,160cr by the end of the quarter, thus implying order book coverage of

~2.4x, which has been continuously deteriorating over last couple of years.

BHELs order backlog consists of 81% orders from power sector (primarily the

BTG space). Considering headwinds in the power sector, not many orders are

expected to be finalized in next few quarters, limiting BHELs order visibility.

Key Highlights: Although the power segment, contributing 81% to the top-lineremained flat yoy at `15,539cr, its operating margin of 26.1% was better than

our expectation, contracting by only 100bp yoy (due to softening in commodity

prices). However, margins of industry segment disappointed, contracting by

878bp yoy to 21.6%. Consequently, blended margins contracted by 98bp yoy to

24.2%. On the bottom-line front, net profit declined by 4.2% yoy to `3,238cr.

Outlook and valuation: Given the strong competition (domestic as well asinternational), declining order book and a weak capex cycle, we expect BHELs

profit, margin and ROE to decline from the current levels. Hence, the cheaper

valuations of 9.4x FY2014E EPS and 12.0x FY2015E EPS respectively, are largely

overshadowed by structural issues plaguing the company. We continue to remainNeutral on the stock.Key financials (Consolidated)Y/E March (` cr) FY2012 FY2013E FY2014E FY2015ENet sales 48,355 48,916 44,054 39,326% chg 13.7 1.2 (9.9) (10.7)

Adj. net profit 7,087 6,689 5,043 3,936% chg 17.1 (5.6) (24.6) (21.9)

EBITDA (%) 20.6 19.4 16.8 15.1

EPS (`) 29.0 27.3 20.6 16.1P/E (x) 6.7 7.1 9.4 12.0

P/BV (x) 3.0 2.4 2.0 1.8

RoE (%) 49.5 37.6 23.5 16.1RoCE (%) 29.2 23.6 16.4 12.3

EV/Sales (x) 0.8 0.9 0.9 1.0

EV/EBITDA (x) 4.1 4.4 5.6 6.7

Source: Company, Angel Research

NEUTRALCMP `193

Target Price -

Investment Period -

Stock Info

Sector

Net Debt (`cr) (5,227)

Bloomberg Code BHEL@IN

Shareholding Pattern (%)

Promoters 67.7

MF / Banks / Indian Fls 12.5

FII / NRIs / OCBs 15.1

Indian Public / Others 4.7

Abs. (%) 3m 1yr 3yr

Sensex 2.0 23.6 19.6

BHEL (6.7) (7.6) (58.1)

Reuters Code BHEL.BO

BSE Sensex 19,704

Nifty 5,984

Avg. Daily Volume 507,905

Face Value (`) 2

Beta 1.1

52 Week High / Low 272/175

Capital Goods

Market Cap (`cr) 47,202

Amit Patil022-39357800 Ext: 6839

[email protected]

BHELPerformance Highlights

4QFY2013 Result Update | Capital Goods

May 24, 2013

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BHEL | 4QFY2013 Result Update

May 24, 2013 2

Exhibit 1:Quarterly performance (Standalone)

(` cr) 4QFY13 4QFY12 % chg (yoy) 3QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)Net Sales 18,850 19,260 (2.1) 10,042 87.7 47,618 47,230 0.8Other operating income 354 329 7.5 178 - 807 794 1.6Total income 19,204 19,589 (2.0) 10,220 87.9 48,425 48,024 0.8Stock adjustments 967 530 149 116 (823)

Raw Material 9,662 10,605 (8.9) 5,588 72.9 27,240 28,240 (3.5)

(% of total income) 55.3 56.8 56.1 56.3 58.8

Employee Cost 1,439 1,478 (2.6) 1,437 0.1 5,753 5,466 5.3

(% of total income) 7.5 7.5 14.1 11.9 11.4

Other Expenses 2,485 2,039 21.9 1,412 76.0 5,927 5,244 13.0(% of total income) 12.9 10.4 13.8 12.2 10.9

Total Expenditure 14,553 14,652 (0.7) 8,586 69.5 39,035 38,127 2.4EBITDA 4,651 4,937 (5.8) 1,634 184.6 9,389 9,898 (5.1)(EBITDA %) 24.2 25.2 16.0 19.4 20.6

Interest 41 18 121.5 51 (20.4) 125 51 144.5

Depreciation 289 254 13.7 220 31.4 953 801 19.1

Other Income 292 399 (26.7) 332 (12.0) 1,122 1,256 (10.7)

PBT 4,614 5,064 (8.9) 1,696 172.1 9,432 10,302 (8.4)(% of total income) 24.0 25.8 16.6 19.5 21.5

Total Tax 1,377 1,684 (18.2) 514 167.9 2,818 3,262 (13.6)

(% of PBT) 29.8 33.3 30.3 5.8 6.8

PAT (Reported) 3,238 3,380 (4.2) 1,182 173.9 6,615 7,039 (6.0)(% of total income) 16.9 17.3 11.6 13.7 14.7

EPS (`)* 13.2 13.8 (4.2) 4.8 173.9 27.0 28.8 (6.0)Source: Company, Angel Research.* Note: Adjusted for stock split

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Top-line in-line with our estimates

Bharat Heavy Electricals Ltd (BHEL)s top-line performance for 4QFY2013 was

largely in-line with our estimates, declining by 2.0% yoy to `19,204cr. Although

the power segment (contributing 81% to the top-line) remained flat yoy to

`15,539cr, the industrial segment declined by 7.2% yoy to `4,341cr on account of

industrial slowdown which is leading to deferment of capacity addition resulting in

lower order inflows, delay in project execution and payments.

Exhibit 2:Top-line trend


Exhibit 3:Segment-wise performance

Y/E March (` cr) 4QFY13 4QFY12 % chg (yoy) 3QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)RevenuePower 15,539 15,574 (0.2) 8,308 87.0 39,577 37,863 4.5

Industry 4,341 4,679 (7.2) 2,237 94.1 10,604 11,659 (9.0)

Total Revenue 19,880 20,253 (1.8) 10,544 88.5 50,181 49,522 1.3EBITPower 4,062 4,260 (4.7) 1,522 166.8 8,559 8,184 4.6

Industry 936 1,420 (34.1) 409 129.0 2,197 3,342 (34.3)

Total EBIT 4,998 5,680 (12.0) 1,931 158.8 10,756 11,526 (6.7)Revenues mix (%)Power 78.2 76.9 78.8 78.9 76.5

Industry 21.8 23.1 21.2 21.1 23.5

EBIT Margin (%)Power 26.1 27.4 18.3 21.6 21.6

Industry 21.6 30.4 18.3 20.7 28.7

Total 25.1 28.0 18.3 21.4 23.3Source: Company, Angel Research

18,2

22

7,2

71

10,5

46

10,7

43

19,5

89

8439

10562

10220

19204

30.7

10.2

24.2

19.1

7.5

16.10.2

(4.9)

(2.0)

-10

0

10

20

30

40

0

4,000

8,000

12,000

16,000

20,000

24,000

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

Sales (` cr, LHS) Growth (yoy %)

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May 24, 2013 4

Exhibit 4:Power segment revenue and growth


Exhibit 5:Industry segment revenue and growth


Softening of commodity prices limit margin contraction

BHELs blended margins contracted by 100bp yoy to 24.2%. The Power segments

margin stood at 26.1%, a contraction of only 122bp yoy (in spite of tough

competition), aided by softening in commodity prices. However, margins of

industry segment disappointed, contracting by 878bp yoy to 21.6%.

Exhibit 6:Segment EBIT Margin


Exhibit 7:Blended EBITDA margins


Net Profit declines 4.2% yoy

Subdued order inflow since last couple of years has led to a decline in advance

payments, forcing the company to borrow more to fund its working capital

requirements. Consequently, the interest expense increased to `41cr in 4QFY2013

(vs `18cr in 4QFY2012). Tax benefit on R&D expenses led to 18.2% yoy fall in tax

expenses. Thus, net profit declined by 4.2% yoy to `3,238cr.

15,1

44

5,7

80

7,7

97

8,7

11

15,5

74

6,7

72

8,9

58

8,3

08

15,5

39

35.8

7.610.5

58.3 2.8

17.2

14.9 (4.6)

(0.2)

-10

0

10

20

30

40

50

60

70

-

3,500

7,000

10,500

14,000

17,500

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

Power (` cr, LHS) Growth (yoy %)

3,7

09

1,6

53

2,9

60

2,3

67

4,6

79

1,9

72

2,0

55

2,2

37

4,3

41

17.819.1

78.2

(37.3)

26.1

19.3(30.6)

(5.5)

(7.2)

-50

-25

0

25

50

75

100

-

800

1,600

2,400

3,200

4,000

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

Industry (` cr, LHS) Growth (yoy %)

27.3

16.5

16.9

19.0

27.4

17.8

19.7

18.3

26.1

26.6

22.6

27.0

31.6

30.4

21.0

21.3

18.3

21.6

-

6.0

12.0

18.0

24.0

30.0

36.0

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

Power segment EBITM Industry segment EBITM

20.6

14.6

19.2

23.0 22.4

15.3

18.6 19.4

25.2

14.2

18.016.0

24.2

0

5

10

15

20

25

30

0

1,000

2,000

3,000

4,000

5,000

6,000

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

EBITDA (` cr, LHS) EBITDAM (%, RHS)

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Order inflow boosted by NTPC bulk order

Order inflows surprised positively, coming in at `20,800cr in 4QFY2013 (vs

`7,719cr in 4QFY2012 and `10,739cr in 9MFY2013), primarily due to NTPC bulk

orders being booked during the quarter. Thus, for the full year, the total order

inflow increased by robust 43% yoy to `31,650 (aided by low base). However, the

total order book declined by 14.7% yoy to `115,160cr by the end of the quarter,

thus implying order book coverage of ~2.4x, which has been continuously

deteriorating over last couple of years. BHELs order backlog consists of 81%

orders from power sector (primarily the BTG space). With many headwinds in the

power sector, not many orders are expected to be finalized in next few quarters,

limiting BHELs order visibility.

Exhibit 8:Declining Order Book


Exhibit 9:Order book to sales (x)


Exhibit 10:Orders won during FY2013

Order details Value (` Cr)Power 25,560

Exports 2,004

Industrial Segment order flows 4,086

Total order inflows 31,650Source: Company, Angel Research Note

Outlook

Deteriorating dynamics in the BTG space: The recent trend in biddings andprojects wins indicates that BHELs leadership position is under threat, thus hinting

at a loss in its market share going ahead. Further, given the structural issues faced

by the power sector, times look tough for the BTG players.

Stock to remain under pressure: BHEL is trading at historically low valuations of9.4x and 12.0x on FY2014E and FY2015 EPS estimates respectively, owing to 1)

weak order inflow; 2) weak investment capex due to a high interest rate regime,

which could take more time to gather momentum than earlier anticipated; and 3)

changing competitive dynamics in the BTG space with strong capacity additions.

We believe these concerns are far from over and hence, expect the stock to remainunder pressure.

164,1

45

159,6

39

161,0

46

146,5

41

135,0

00

132,9

00

122,3

00

113,7

00

115,1

60

14.1

7.9 4.8(7.0)

(17.8)(16.7)

(24.1) (22.4)(14.7)

(30)

(25)

(20)

(15)

(10)

(5)

0

5

1015

20

-

40,000

80,000

120,000

160,000

200,000

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

Order Backl og (` cr, LHS) Gro wth ( yo y % , RHS)

4.3 4.3 4.2 4.13.9

3.73.6

3.1

2.82.7

2.52.3 2.4

2.0

2.5

3.0

3.5

4.0

4.5

5.0

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

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Valuation: Given the strong competition (domestic as well as international),declining order flows and a weak capex cycle, we expect BHELs profit margin and

ROE to decline from the current levels. Hence, the cheaper valuations of 9.4x

FY2014E EPS and 12.0x FY2015E EPS respectively, are largely overshadowed bystructural issues plaguing the company. We continue to remain Neutral on thestock.Exhibit 11:One year forward PE Band Chart


0

100

200

300

400

500

600

700

800

Jan-0

7

May-0

7

Sep-0

7

Jan-0

8

May-0

8

Sep-0

8

Jan-0

9

May-0

9

Sep-0

9

Jan-1

0

May-1

0

Sep-1

0

Jan-1

1

May-1

1

Sep-1

1

Jan-1

2

May-1

2

Sep-1

2

Jan-1

3

May-1

3

Share Price (`) 6x 12x 18x 24x

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Exhibit 12:Peer comparison

Company Reco. CMP Tgt. price Upside P/BV(x) P/E(x) FY2013-15E RoE (%)(`) (`) (%) FY14E FY15E FY14E FY15E EPS CAGR FY14E FY15E

ABB* Sell 661 461 (30.3) 5.2 5.0 57.4 39.0 61.6 9.3 13.1BHEL Neutral 193 - - 2.0 1.8 9.4 12.0 (23.3) 23.5 16.1BGR Energy Neutral 190 - - 1.0 0.9 7.6 6.8 11.2 25.2 22.6

Crompton Greaves Buy 96 117 21.4 1.6 1.4 14.0 10.3 111.6 11.7 14.5

Jyoti Structures Buy 28 33 16.9 0.3 0.3 3.2 2.7 15.2 9.9 10.5

KEC International Buy 43 63 45.3 0.9 0.8 7.1 5.1 83.5 20.2 23.0

Thermax Neutral 583 - - 3.3 2.9 19.6 17.7 10.7 17.9 17.4

Source: Company, Angel Research Note:* denotes December ending financials of a company

Company Background

BHEL is the largest manufacturer of power equipment (boiler and turbine

generators) in India. The company operates in two segments - power and industry.

Sets produced by BHEL account for ~66% of India's installed power capacity,

which generate ~70% of India's power. Notably, BHEL is the first domestic

company to foray into the supercritical technology.

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Profit & loss statement (Consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ETotal Income 33,653 42,538 48,355 48,916 44,054 39,326% chg 24.6 26.4 13.7 1.2 (9.9) (10.7)Net Raw Materials 19,626 22,767 27,734 27,626 25,155 22,495Other Mfg costs 1,612 5,744 5,121 5,983 5,771 5,191

Personnel 6,590 5,453 5,530 5,824 5,727 5,702

Other - - - - - -

Total Expenditure 27,828 33,963 38,385 39,433 36,653 33,388

EBITDA 5,825 8,575 9,971 9,483 7,401 5,938% chg 39.8 47.2 16.3 (4.9) (22.0) (19.8)(% of Net Sales) 17.3 20.2 20.6 19.4 16.8 15.1

Depn & Amort. 339 478 803 957 848 950

EBIT 5,486 8,097 9,167 8,525 6,554 4,988% chg 41.2 47.6 13.2 (7.0) (23.1) (23.9)(% of Net Sales) 16.3 19.0 19.0 17.4 14.9 12.7

Interest & other Charges 37 56 53 128 108 112

Other Income 1,165 1,027 1,272 1,129 1,025 955

(% of PBT) 17.6 11.3 12.3 11.8 13.7 16.4

Others 7.2 (1.8) (19.1) - - -

Recurring PBT 6,621 9,066 10,367 9,527 7,470 5,831% chg 36.9 36.9 14.4 (8.1) (21.6) (21.9)Extraord. Exp/(Inc.) - - - (4.1) - -

PBT (reported) 6,621 9,066 10,367 9,531 7,470 5,831Tax 2,294 3,012 3,280 2,838 2,428 1,895(% of PBT) 34.6 33.2 31.6 29.8 32.5 32.5

PAT (reported) 4,327 6,053 7,087 6,693 5,043 3,936Add: earnings of associate - - - - - -Less: Minority interest (MI) - - - - - -

Prior period items - - - - - -

PAT after MI (reported) 4,327 6,053 7,087 6,693 5,043 3,936ADJ. PAT 4,327 6,053 7,087 6,689 5,043 3,936% chg 38.9 39.9 17.1 (5.6) (24.6) (21.9)(% of Net Sales) 12.9 14.2 14.7 13.7 11.4 10.0

Basic EPS (`) 17.7 24.7 29.0 27.3 20.6 16.1Fully Diluted EPS (`) 17.7 24.7 29.0 27.3 20.6 16.1% chg 38.9 39.9 17.1 (5.6) (24.6) (21.9)

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers

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Balance Sheet (Consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 490 490 490 490 490 490Preference Capital - - - - - -

Reserves& Surplus 15,406 19,666 24,914 30,043 33,522 35,894

Shareholders Funds 15,896 20,155 25,403 30,532 34,011 36,383Minority Interest - - 5 5 5 5

Total Loans 148 196 369 2,624 1,726 1,526

Deferred Tax Liability (1,529) (2,165) (1,549) (1,556) (1,556) (1,756)

Other long term liablities 9,171 7,567 5,811 5,111 2,561

Total Liabilit ies 14,516 27,357 31,794 37,416 39,298 38,720APPLICATION OF FUNDSGross Block 6,858 8,344 10,017 11,201 12,675 14,084

Less: Acc. Depreciation 4,249 4,734 5,499 6,215 7,063 8,013

Net Block 2,609 3,610 4,519 4,986 5,612 6,071Capital Work-in-Progress 1,552 1,757 1,763 1,949 1,876 1,867

Goodwill - - - - - -

Investments 6 11 6 6 6 6

Current Assets 43,002 44,677 50,048 52,441 50,591 48,461

Cash 9,856 9,707 6,734 7,845 7,237 8,780

Loans & Advances 2,662 3,504 3,105 3,054 2,908 2,596

Other 407 310 152 303 314 289

Current liabilities 32,656 30,095 34,086 32,780 29,601 28,500

Net Current Assets 10,346 14,581 15,961 19,660 20,990 19,962Other non CA 2 7,398 9,545 10,814 10,814 10,814

Total Assets 14,516 27,357 31,794 37,416 39,298 38,720Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

previous year numbers

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Cashflow (Consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EProfit before tax 6,621 9,066 10,367 9,527 7,470 5,831

Depreciation 339 547 806 957 848 950(Inc)/Dec in Working Capital (2,403) (4,385) (8,523) (5,860) (2,637) (179)

Less: Other income 833 647 837 1,129 1,025 955

Direct taxes paid 2,021 2,942 3,197 2,838 2,428 1,895

Others (241) 654 462.9 4 - -

Cash Flow from Operations 1,463 2,292 (921) 661 2,228 3,752(Inc.)/Dec.in Fixed Assets (1,752) (1,691) (1,680) (1,370) (1,400) (1,400)

(Inc.)/Dec. in Investments - (5) 5 - - -

Other income 1,165 1,027 1,272 1,129 1,025 955

Cash Flow from Investing (587) (669) (402) (241) (375) (445)Issue of Equity - - - - - -

Inc./(Dec.) in loans (18) 48 172 2,255 (897) (200)

Dividend Paid (Incl. Tax) 1,332 1,821 1,821 1,564 1,564 1,564

Others - - - - - -

Cash Flow from Financing (1,350) (1,773) (1,649) 691 (2,461) (1,764)Inc./(Dec.) in Cash (474) (150) (2,972) 1,111 (608) 1,543

Opening Cash balances 10,330 9,856 9,707 6,734 7,845 7,237Closing Cash balances 9,856 9,707 6,734 7,845 7,237 8,780


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May 24, 2013 11

Key Ratios

Y/E March FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 10.9 7.8 6.7 7.1 9.4 12.0P/CEPS 10.1 7.2 6.0 6.2 8.0 9.7

P/BV 3.0 3.7 3.0 2.4 2.0 1.8

Dividend yield (%) 2.4 3.3 3.3 2.9 2.9 2.9

EV/Sales 1.1 0.9 0.8 0.9 0.9 1.0

EV/EBITDA 6.4 4.4 4.1 4.4 5.6 6.7

EV/Total Assets 2.3 1.3 1.2 1.1 1.0 1.0

OB/Sales 4.2 3.8 2.8 2.4 2.3 2.5

Per Share Data (`)EPS (Basic) 17.7 24.7 29.0 27.3 20.6 16.1

EPS (fully diluted) 17.7 24.7 29.0 27.3 20.6 16.1

Cash EPS 19.1 26.7 32.2 31.2 24.1 20.0

DPS 4.7 6.4 6.4 5.5 5.5 5.5

Book Value 64.9 52.1 64.8 80.6 94.8 104.5

DuPont AnalysisEBIT margin (%) 16.3 19.0 19.0 17.4 14.9 12.7

Tax retention ratio 0.7 0.7 0.7 0.7 0.7 0.7

Asset turnover (x) 7.5 3.3 2.1 1.7 1.4 1.2

ROIC (Post-tax) (%) 80.3 41.6 27.0 20.7 13.7 10.3

Cost of Debt (Post Tax) (%) 15.2 21.8 12.8 6.0 3.4 4.7

Leverage (x) (0.6) (0.7) (0.4) (0.3) (0.2) (0.3)

Operating RoE (%) 40.5 26.9 21.3 16.8 11.2 8.7

Returns (%)RoCE (Pre-tax) 37.7 35.5 29.2 23.6 16.4 12.3

Angel RoIC (Pre-tax) 176.3 71.4 42.8 31.6 21.5 16.2

RoE 30.0 42.3 49.5 37.6 23.5 16.1

Turnover ratios (x)Asset Turnover (Gross Block) 5.4 5.5 5.2 4.6 3.7 2.9

Inventory / Sales (days) 93 87 91 102 102 102

Receivables (days) 200 176 219 255 250 255

Payables (days) 332 395 437 431 429 419

WC cycle (ex-cash) (days) (8) 23 53 79 106 116Solvency ratios (x)Net debt to equity (0.6) (0.7) (0.4) (0.3) (0.2) (0.3)

Net debt to EBITDA (1.7) (1.1) (0.6) (0.6) (0.7) (1.2)

Int. coverage (EBIT / Int.) 149.5 143.6 172.6 66.8 60.6 44.5


7/30/2019 BHEL 4Q FY 2013

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May 24 2013 12

Research Team Tel: 022 3935 7600 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

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Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

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Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement BHEL

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

bhel 4q fy 2013

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