⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BEML - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | BEML | Market Cap | 14,464 Cr. | Current Price | 1,735 ₹ | High / Low | 2,437 ₹ |
| Stock P/E | 47.6 | Book Value | 333 ₹ | Dividend Yield | 0.61 % | ROCE | 16.1 % |
| ROE | 10.6 % | Face Value | 5.00 ₹ | DMA 50 | 1,809 ₹ | DMA 200 | 1,906 ₹ |
| Chg in FII Hold | -0.31 % | Chg in DII Hold | -0.15 % | PAT Qtr | 54.8 Cr. | PAT Prev Qtr | -63.9 Cr. |
| RSI | 47.4 | MACD | -21.4 | Volume | 3,05,219 | Avg Vol 1Wk | 5,24,916 |
| Low price | 1,173 ₹ | High price | 2,437 ₹ | PEG Ratio | 1.61 | Debt to equity | 0.24 |
| 52w Index | 44.4 % | Qtr Profit Var | 6.59 % | EPS | 36.5 ₹ | Industry PE | 33.1 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved to 54.8 Cr. from a loss of -63.9 Cr., showing recovery. EPS stands at 36.5 ₹.
- Margins: ROCE at 16.1% and ROE at 10.6% indicate moderate efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.24 reflects manageable leverage.
- Cash Flow: Profit turnaround supports operational cash generation, though consistency is needed.
💹 Valuation Indicators
- P/E Ratio: 47.6, higher than industry average of 33.1, suggesting overvaluation.
- P/B Ratio: Current price (1735 ₹) vs. book value (333 ₹) shows steep premium.
- PEG Ratio: 1.61, indicating growth prospects are moderately aligned with valuation.
- Intrinsic Value: Current market price appears stretched compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Strong presence in defense, mining, and construction equipment manufacturing.
- Government-linked contracts provide stability and long-term opportunities.
- Recovery in profitability highlights resilience in cyclical industries.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range lies between 1,500–1,600 ₹, given current premium valuation.
- Long-Term Holding: Suitable for investors seeking exposure to defense and infrastructure growth, but entry should be closer to fair value.
✅ Positive
- Turnaround from loss (-63.9 Cr.) to profit (54.8 Cr.).
- ROCE at 16.1% reflects decent capital efficiency.
- Dividend yield of 0.61% provides some income support.
⚠️ Limitation
- P/E ratio (47.6) above industry average, indicating steep valuation.
- ROE at 10.6% is modest compared to peers.
- Quarterly profit variation shows volatility in earnings.
📉 Company Negative News
- FII holding decreased by -0.31% and DII holding by -0.15%, showing institutional caution.
- MACD negative (-21.4), indicating weak short-term momentum.
📈 Company Positive News
- Quarterly PAT turnaround from losses to profits highlights operational recovery.
- EPS of 36.5 ₹ supports long-term value creation.
🏭 Industry
- Defense and infrastructure equipment sector benefits from government spending and modernization initiatives.
- Industry P/E at 33.1 highlights moderate valuation compared to BEML’s premium.
🔎 Conclusion
BEML Ltd. (BEML) shows improving fundamentals with a turnaround in profitability, moderate ROCE, and manageable debt levels. However, the stock trades at a premium compared to industry peers, making current levels less attractive for fresh entry. Investors may consider accumulating closer to 1,500–1,600 ₹ for better risk-reward balance, and hold long-term to benefit from defense and infrastructure-driven demand.