124 DALAL STREET INVESTMENT JOURNAL I JULY 22 - AUG 4, 2019 DSIJ. in^
BHARAT HEAVY ELECTRICALS LIMITED RELIANCE HOME FINANCE LIMITED
I am holding 235 shares of RHFL purchased at
`22.35 per share. Should I hold or book MY loss as it
is now trading around `13?- Thomas Ludraj
I am holding 190 shares of BHEL at `75 each. Should
I hold or sell?- Pars Pandita
BSE/NSE Code 500103 / BHEL
Face Value ` 2
CMP `64.65
52-Week High `83.25 / Low `56.25
Your Current
Profit/(Loss)(13.8 per cent)BSE/NSE Code 540709 / RELHOME
Face Value ` 10
CMP `11.66
52-Week High `76.90 / Low `9.75
Your Current
Profit/(Loss)(47.82 per cent)R
eliance Home Finance Limited (RHFL) is housing finance
company. It is a 100 per cent subsidiary of Reliance
Capital and, as part of business operations, provides home
loans, construction finance, affordable housing loans and loan
against property (LAP) or home equity loans. The company is
able to maintain its presence with around 90 business locations
situated across the country. It also provides property solutions
services. RHFL’s subsidiaries include Reliance Nippon Life Asset
Management Limited, Reliance Asset Management (Singapore)
Pte. Limited, Reliance Capital Pension Fund Limited, Reliance
Capital Trustee Co. Limited, Reliance Exchangenext Limited,
Reliance Securities Limited, Reliance Commodities Limited,
Reliance Financial Limited, Reliance Money Express Limited,
Reliance Money Solutions Private Limited, Quant Broking
Private Limited and Quant Securities Private Limited. RHFL’s
market cap is `596.02 crore.The company’s equity shares were
successfully listed on BSE and NSE with effect from September
22, 2017.On the financial front, the net sales for the third quarter of FY19
came in at `514 crore, which is an increase of 27.54 per cent as
compared to the net sales of `403 crore for the third quarter of
FY18. The PBDT for the third quarter of FY19 was reported at
`88 crore, an increase of 14.28 per cent as against `77 crore
reported for the same quarter of the previous fiscal. There was an
increase in the net profit by 19.57 per cent for the third quarter of
FY19 to `55 crore when compared to `46 crore for the third
quarter of the previous fiscal.Looking at the annual trend, the company reported net sales of
`1,603 crore for FY18. For FY18 PBDT stood at `298 crore. In
FY18, the company’s net profit was `181 crore. In the recent turn
of events for the company, PwC had resigned as its auditors
stating that RHFL did not give satisfactory responses to their
queries. Also credit rating agency CARE assigned a ‘D’ or default
rating for the company’s `400-crore worth of non-convertible
debentures (NCDs) recently. Therefore, we recommend a SELL.B
harat Heavy Electricals Limited (BHEL) is Government
of India founded and owned company headquartered in
New Delhi. It is considered to be one of the largest power
generation equipment manufacturer in India. The company
manufactures integrated power plant equipments which
include designing, engineering, construction, testing,
commissioning and servicing a range of products in sectors
such as power, transmission, industry, transportation, oil and
gas, renewable energy and defence. As part of its operations in
the power industry, the company supplies steam turbines,
generators, boilers, hydro turbines and nuclear turbine
generator sets. It also provides services for power utilities, oil
and gas, metallurgical and mining, cement and sugar industries,
etc.Looking at the quarterly trends, for the fourth quarter of FY19,
the company reported net sales of `10,297.16 crore, an increase of
1.51 per cent as against the net sales of `10,143.66 crore for the
same quarter of the previous fiscal. PBDT also increased by 4.62
per cent for the fourth quarter of FY19 and was `1,419.66 crore as
compared to `1,356.94 crore for the fourth quarter of FY18. For
the fourth quarter of FY19, the net profit increased by 49.33 per
cent to `682.70 crore when compared to `457.17 crore in the
fourth quarter of the previous fiscal.On the annual front, in FY19, the company reported net sales of
`30,348.95 crore, an increase of 4.43 per cent over the net sales of
`29,060.98 crore reported in the previous fiscal. For FY19, the
PBDT stood at `2,532.67 crore as against `2,371.39 crore for
FY18. In FY19, the net profit significantly increased by 50.68 per
cent to `1,215.39 crore from `806.60 crore posted in the previous
fiscal. BHEL has received orders from Maharashtra State Power
Generation Company (MAHAGENCO), GSECL and GNFC
cumulatively valued at `520 crore. The company has a market cap
of `23,190.54 crore. Thus, based on our analysis, we would
recommend our investor-readers to HOLD.HOLD SELLQueryBoardQueryBoardQueryBoard
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