Technology HSBC upgrades BHEL from ‘hold’ to ‘buy’ August 28, 2019August 28, 2019 ET Bureau The upgrade and the announcement of order wins worth Rs 2,500 crore helped shares of BHEL end up 5.4 per cent at Rs 52.65 on Tuesday. Mumbai: HSBC has upgraded Bharat Heavy Electricals (BHEL) to ‘buy’ from ‘hold’ following a steep correction in the company’s stock price over the last year. However, it has lowered the target price on BHELNSE -1.33 % to Rs 60 from Rs 62 after trimming earnings forecast by 1-5 per cent due to lower order inflow expectations. The upgrade and the announcement of order wins worth Rs 2,500 crore helped shares of BHEL end up 5.4 per cent at Rs 52.65 on Tuesday. “We continue to see near-term weakness in business fundamentals, with slow orders and bulging receivables. However, the steep stock price correction coupled with balance sheet strength and long-term potential make for an upgrade,” said HSBC. HSBC sees much lower risk on receivables as 80 per cent of receivables from the public sector and receivables from the private sector are largely provided for. Unwinding receivables as projects achieve completion can unlock significant cash and should be a catalyst for the stock’s performance, said HSBC.