In a bid to put its idle assets to work, government-owned Bharat Heavy Electricals Ltd (Bhel) has sought global partners who wish to manufacture in India.
Although the move could help leverage assets and unlock shareholder value in the long run, it did little to excite investors.
Bhel’s mere expression of interest to invite global companies does not offer any comfort of near-term revenue or profit ramp-up. “We believe it is too early to comment on how much value this could add for BHEL, as even in the most optimistic scenario, the first revenue contribution from such partnership will materialize only after 12-18 months," said a note by Emkay Global Financial Services Ltd.