Its PE has gradually expanded and investors who bought at that price are now sitting on gains of nearly 83 per cent, as this debt-free company is currently quoting Rs 183.70.
Value seekers soon began spotting an opportunity in BHEL and started buying the stock. That was a nine-year low for the engineering giant. While ITC and Hindustan Unilever were expanding their price-to-earnings (PE) ratio, BHEL's PE began sliding and at one point, dipped below five times earnings in August 2013, when its stock hit a low of Rs 100. Since the beginning of 2103, the stock lost 55 per cent till August as investors sought out other growth opportunities. Take Bharat Heavy Electricals Ltd (BHEL), for instance. However, in the fourth quarter of 2013, stocks that were beaten down and slow-growing started making a splashing comeback. But what is it really?įor the better part of 2013, investors were ignoring traditional valuation indicators and going for companies with a great revenue potential or where the market opportunity seemed huge. The stock market is dancing to the value tune these days.
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