BHEL declines further on Goldman Sachs sell report

State-controlled engineering company Bharat Heavy Electricals (BHEL) declined one percent in early trade as the research firm Goldman Sachs has recommended a sell rating on the stock with a target price of Rs 200.

"With continued lack of new order wins and existing order execution also slow, there are concerns on future revenue growth," Goldman Sachs reasoned.

On Friday, shares lost 1% (intraday it fell more than 4%) as the company disappointed the street on every parameter in the third quarter of financial year 2012-13 with the net profit falling 17.5 percent year-on-year - higher than expected - to Rs 1,182 crore in the December quarter due to slowdown in orders.

Revenues dropped by 4.8 percent to Rs 10,041 crore from Rs 10,548 crore during the same period.

Meanwhile, its outstanding order book declined to Rs 1.13 lakh crore as on December 31 as against Rs 1.22 lakh crore reported in September quarter.

At 10:09 hours IST, shares slipped 0.71 percent to Rs 223.75 on Bombay Stock Exchange.

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