BEML - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.6
| Stock Code | BEML | Market Cap | 14,574 Cr. | Current Price | 1,755 ₹ | High / Low | 2,437 ₹ |
| Stock P/E | 98.8 | Book Value | 349 ₹ | Dividend Yield | 0.61 % | ROCE | 7.76 % |
| ROE | 5.12 % | Face Value | 5.00 ₹ | DMA 50 | 1,763 ₹ | DMA 200 | 1,798 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.32 % | PAT Qtr | 179 Cr. | PAT Prev Qtr | -22.7 Cr. |
| RSI | 46.3 | MACD | -4.01 | Volume | 6,21,646 | Avg Vol 1Wk | 2,98,836 |
| Low price | 1,355 ₹ | High price | 2,437 ₹ | PEG Ratio | -118 | Debt to equity | 0.11 |
| 52w Index | 36.9 % | Qtr Profit Var | -37.7 % | EPS | 17.7 ₹ | Industry PE | 30.6 |
BEML shows weak swing trading potential due to stretched valuation and modest fundamentals. The P/E ratio (98.8) is far higher than the industry average (30.6), and the PEG ratio (-118) indicates poor valuation relative to growth. ROCE (7.76%) and ROE (5.12%) are low, reflecting inefficiency. Technical indicators are weak: RSI at 46.3 is neutral to bearish, and MACD at -4.01 signals negative momentum. The stock is trading near its 50 DMA (1,763 ₹) and 200 DMA (1,798 ₹), showing indecision. PAT improved to 179 Cr from a loss (-22.7 Cr), but quarterly profit variation (-37.7%) highlights volatility. Debt-to-equity is low (0.11), which is a positive.
🔑 Optimal Entry Price: 1,700–1,720 ₹ (near support levels).
📤 Exit Strategy if Holding: Consider exiting near 1,850–1,900 ₹ resistance unless momentum strengthens.
✅ Positive
- 📈 Debt-to-equity ratio (0.11) is low, ensuring financial stability.
- 📊 PAT turned positive (179 Cr vs -22.7 Cr), showing recovery.
- 📉 FII holdings increased (+0.08%), showing foreign investor confidence.
- 📈 Dividend yield (0.61%) adds shareholder value.
⚠️ Limitation
- 📉 Extremely high P/E ratio compared to industry peers.
- 📊 Negative PEG ratio (-118) suggests poor valuation relative to growth.
- 📉 Weak ROCE and ROE.
- 📉 Technical indicators (RSI neutral, MACD bearish) show weak momentum.
📰 Company Negative News
- 📉 Quarterly profit variation (-37.7%) indicates earnings volatility.
- ⚠️ Overvaluation risk due to stretched multiples.
- 📉 DII holdings decreased (-0.32%), showing reduced domestic confidence.
🌟 Company Positive News
- 📈 PAT recovery from losses to profit.
- 📊 EPS at 17.7 ₹ provides a positive earnings base.
- 📉 FII confidence with increased stake.
🏭 Industry
- 📊 Industry P/E at 30.6, much lower than BEML, showing sector is moderately valued.
- 📈 Infrastructure and defense equipment demand supports long-term growth.
- ⚠️ Valuation gap may limit upside compared to peers.
📌 Conclusion
BEML is a weak swing trade candidate due to overvaluation, weak fundamentals, and bearish technicals. Entry is best near 1,700–1,720 ₹ with cautious exit around 1,850–1,900 ₹. While PAT recovery is encouraging, earnings volatility and stretched valuation limit short-term upside. Suitable only for aggressive traders with strict stop-loss discipline.