Shares of India’s Bharat Heavy Electricals Ltd fall 1.2 pct.
HSBC downgrades stock to “reduce” from “accumulate” and cuts price target to 205 rupees from 228 rupees.
Low visibility on new order inflows creates headwinds for FY16 earnings – HSBC.
Structural capacity oversupply and pay revision will keep margins under pressure – HSBC.
Says attempts to diversify into new businesses have been slow and less yielding.
Improvement in existing power equipment business alone will not support any large-scale ROE expansion from current cyclical lows – HSBC