Shares of Bharat Heavy Electricals Ltd today fell 3.1 per cent as the company reported a 69 per cent decline in December quarter net profit.
According to HDFC Securities, execution of projects has not yet picked up and the sector remains mired in myriad issues.
Higher competitive intensity, slower execution and rigid fixed costs will threaten BHEL’s margins and growth, it says.
BHEL shares appreciated 32.3 per cent in December quarter, significantly outperforming a 3.9 per cent gain in the NSE index in the same period.