⚠ 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: 2.7
| Stock Code | BEML | Market Cap | 13,003 Cr. | Current Price | 1,560 ₹ | High / Low | 2,437 ₹ |
| Stock P/E | 50.8 | Book Value | 333 ₹ | Dividend Yield | 0.68 % | ROCE | 16.1 % |
| ROE | 10.6 % | Face Value | 5.00 ₹ | DMA 50 | 1,695 ₹ | DMA 200 | 1,844 ₹ |
| Chg in FII Hold | -0.31 % | Chg in DII Hold | -0.15 % | PAT Qtr | -22.7 Cr. | PAT Prev Qtr | 54.8 Cr. |
| RSI | 40.5 | MACD | -52.5 | Volume | 3,30,185 | Avg Vol 1Wk | 2,72,764 |
| Low price | 1,226 ₹ | High price | 2,437 ₹ | PEG Ratio | 1.71 | Debt to equity | 0.24 |
| 52w Index | 27.6 % | Qtr Profit Var | -192 % | EPS | 30.8 ₹ | Industry PE | 30.1 |
📊 Financial Overview
- Revenue & Profitability: PAT turned negative (-22.7 Cr. vs 54.8 Cr. prior), showing sharp decline (-192%).
- Margins & Returns: ROCE (16.1%) and ROE (10.6%) are moderate, reflecting average efficiency.
- Debt: Debt-to-equity ratio at 0.24, manageable leverage.
- Cash Flow: EPS at 30.8 ₹, but earnings volatility weakens consistency.
💹 Valuation Metrics
- P/E Ratio: 50.8 vs Industry PE of 30.1 → Overvalued.
- P/B Ratio: Current Price ₹1,560 vs Book Value ₹333 → Stretched valuation.
- PEG Ratio: 1.71 → Suggests valuation is high relative to growth.
- Intrinsic Value: Current price above fair value zone, limited upside.
🏢 Business Model & Competitive Advantage
- Strong presence in defense, mining, and construction equipment manufacturing.
- Government-linked contracts provide stability.
- However, earnings volatility and high valuation limit competitive strength.
📈 Entry Zone Recommendation
- Technicals: RSI at 40.5 (near oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹1,250–₹1,350 if correction continues.
- Long-term holding viable only if profitability stabilizes and growth resumes.
✅ Positive
- Strong industry presence in defense and infrastructure equipment.
- Debt-to-equity ratio low (0.24).
- Dividend yield at 0.68% provides minor income support.
⚠️ Limitation
- Quarterly profit turned negative (-192%).
- High P/E ratio compared to industry peers.
- Valuation multiples stretched despite weak earnings.
📉 Company Negative News
- FII holding reduced (-0.31%).
- DII holding reduced (-0.15%).
- Profitability under severe pressure.
📈 Company Positive News
- Strong government-linked contracts ensure long-term demand.
- Dividend yield higher than some peers.
🏭 Industry
- Industry PE at 30.1, lower than company’s 50.8.
- Sector growth supported by infrastructure and defense spending.
🔎 Conclusion
- BEML shows strong industry positioning but faces sharp earnings decline.
- Valuation is stretched compared to peers, limiting near-term upside.
- Best strategy: Accumulate in the ₹1,250–₹1,350 zone after correction.
- Long-term holding viable only if profitability stabilizes and growth improves.