Story:BHEL is engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products in the power and industrial sectors.However, it is dominant in the power sector, which accounts for more than 75% of the company's total turnover and contributes about 70% to its profitability now. The profitability share of the power sector was nearly 80% in March 2010. The decline has come about due to some key issues affecting the power sector.Issues such as inadequate investments, delay in financial closures, coal shortage, problems in land acquisition and getting environmental clearances for the power plants have taken a heavy toll on BHEL's business in the past couple of years.In addition, pricing pressure because of intense competition and cancellations of orders worth over Rs 5,000 crore last fiscal have hit the company's performance.Even as other companies in the sector are facing margin pressures, BHEL, surprisingly, has posted better margins in FY12 in comparison to its performance of the past five years.But there is just a little cheer as the strong margins are an outcome of some one-off high margin projects executed by the company in the last fiscal.In fact, a growing concern among analysts is whether this behemoth lacks the aggression to bid for new projects at the cost of margins. More so, because the company last fiscal lost some important projects to relatively smaller players in the industry.While the company's current order backlog gives it reasonable revenue visibility for more than two years, it is the significant drop in annual order inflows that has raised concerns about the company's growth in future.However, the company has a fundamentally strong balance sheet with decent levels of cash and near zero debt.The stock is currently trading at a twelve month trailing price-earnings multiple of a little over 7, the cheapest in nearly a decade. The last time that this stock was available at such a dirt-cheap valuations was way back in 2002-03.But despite these tempting valuations, the stock has few takers in the market. The mutual fund holding in the company has dipped from 7.03% a year ago to just about 1.44% as of March 2012.This is in fact the lowest shareholding by mutual funds in the company since at least March 2001. With macro-economic conditions failing to arouse any optimism in the near term, there could be more pain head for BHEL.However, any signs of a revival in the industrial economy are sure to benefit the stock which has already fallen off the crest.