BEML - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Rating: 4.0

BEML Ltd. (Bharat Earth Movers Limited) is a mid-cap defense and infrastructure player with strong fundamentals and recent earnings momentum. Here's a full breakdown

🧠 Fundamental Analysis

Valuation

Stock P/E (57.9) vs Industry P/E (44.5) → Overvalued

PEG Ratio (1.83) → Fair growth-adjusted valuation

Price to Book (≈5.85) → Expensive relative to asset base

Profitability

ROE (10.5%) and ROCE (15.6%) → Decent, but not elite

EPS (₹70.3) → Solid earnings base

Qtr Profit Var (+12%) → Strong YoY growth

Dividend Yield (0.50%) → Low, but consistent payouts

Debt to Equity (0.08) → Excellent financial health

📉 Technical & Trend Indicators

Current Price (₹4,063) is below DMA 50 (₹4,214) but above DMA 200 (₹3,775) → Mild correction in a long-term uptrend

RSI (37.3) → Near oversold zone, potential bounce

MACD (-57.5) → Bearish momentum

Volume slightly above average → Healthy participation

🏁 Ideal Entry Price Zone

Based on valuation and technicals

₹3,800–₹4,000 is a favorable accumulation zone

This aligns with 200 DMA and RSI support levels

🧳 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: Minimum 3–5 years to capture defense capex and infrastructure tailwinds

Exit Strategy

Partial exit if price crosses ₹4,800–₹5,000 and valuation remains stretched

Hold if ROE/ROCE improve and PEG drops below 1.5

Reassess if price breaks below ₹3,600 or if earnings growth stalls

🔮 Long-Term Outlook

BEML has secured multiple defense orders worth ₹293–405 Cr recently

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A 1:2 stock split has been approved to improve liquidity

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Analysts forecast ₹5,137–₹6,308 targets by 2027, with potential upside to ₹9,000+ by 2030

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🧪 Final Verdict

BEML is a financially sound, strategically positioned PSU with exposure to defense, rail, and mining. While valuation is rich, its growth trajectory and government backing make it a solid long-term candidate if accumulated near support zones.

Want to compare it with peers like BEL or HAL for a broader defense sector view?

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www.angelone.in

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www.financialexpress.com

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www.business-standard.com

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