Summary
of Contents
STOCK
UPDATE
Bharat Heavy
Electricals Cluster: Apple
Green Recommendation: Buy Price target: Rs2,650 Current
market price: Rs2,255
Foray into defence equipment
space
Bharat Heavy Electricals Ltd (BHEL) is planning to
produce defence equipment, including weapons. It has already applied
for a licence to produce defence products. It is likely to
manufacture all types of guns, including field guns, air defence
guns, and mortars for the Indian defence sector and para-military
forces. It has also firmed up plans to produce underwater weapon
systems, weapon control solutions and their components.
VIEWPOINT
ABC
Bearings
Expansion to drive growth The
bearing industry is expected to grow at a rapid pace of about 15-20%
going forward. ABC is expected to keep pace with the industry. To
cater to the strong demand, the company is expanding its capacity
from the current 6.5 million units to about 8.0 million units by
October 2007. The company would be able to do this at a minimal
capital expenditure. With technological inputs from NSK it would be
able to make all its lines "universal", capable of producing both
taper as well as cylindrical bearings. At present, the company is
operating at 100%
utilisation. |