BHEL underperformed the Nifty, which traded flat, and also the capital goods sub-index on the Bombay Stock Exchange, which was down 0.5 per cent in morning trade.
The selling in BHEL comes on a day when brokerage UBS cut its target price on the stock by nearly 40 per cent to Rs 70. UBS maintained its "sell" call on BHEL, saying the state-run company will report losses till 2017-18.
BHEL's revenues will remain muted in 2016-17, UBS said. The brokerage values the stock at 0.5 times its FY17 price/book.
BHEL shares have crashed nearly 30 per cent over the last month. The stock has come under heavy selling pressure since it reported a Q3 loss of Rs 1,102 crore earlier this month. BHEL's revenue dropped 14 per cent to Rs 5,330 crore in the December quarter. (Read)
Brokerages Nirmal Bang Securities and Religare had cut their target price on BHEL after announcement of Q3 earnings. Both have a "sell" rating on the stock.
BHEL shares closed 1.9 per cent lower at Rs 101.75 as compared to 0.3 per cent gain in the broader Nifty.
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