BEML - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.4

📊 BEML shows moderate potential for swing trading. The stock is trading below both its 50 DMA (1,898 ₹) and 200 DMA (1,951 ₹), indicating bearish technicals. RSI at 31.0 suggests oversold conditions, but MACD (-83.2) confirms strong negative momentum. The optimal entry price would be around 1,700–1,730 ₹ if the stock stabilizes and shows reversal signs. If already holding, consider exiting near 1,880–1,900 ₹ (close to 50 DMA resistance) or cut losses if the price falls below 1,680 ₹.

✅ Positive

• 📈 Return ratios are decent (ROCE 16.1%, ROE 10.6%).
• 💼 Debt-to-equity ratio at 0.24 indicates manageable leverage.
• 📊 EPS of 36.5 ₹ provides earnings base.
• 📈 Dividend yield of 0.64% offers some shareholder return.
• 📈 PAT turned positive (54.8 Cr.) compared to previous quarter loss (-63.9 Cr.).

⚠️ Limitation

• 📉 High valuation (P/E 47.2 vs Industry PE 33.9).
• 📉 Weak technicals (price below DMA levels, MACD negative).
• 📉 Decline in DII holdings (-0.26%).
• 📉 Lower trading volume compared to average (1.34 lakh vs 2.36 lakh).

🚨 Company Negative News

• 📉 No major negative news reported, but weak technicals and valuation concerns weigh on sentiment.

🌟 Company Positive News

• 📈 Profit turnaround in the latest quarter (PAT positive after previous loss).
• 💼 Slight increase in FII holdings (+0.15%).

🏭 Industry

• 📊 Industry PE at 33.9, lower than BEML’s P/E, suggesting overvaluation.
• 🏗️ Capital goods sector has cyclical demand but benefits from infrastructure and defense spending.

📌 Conclusion

BEML is a moderately weak candidate for swing trading at present due to stretched valuations and bearish technicals. Entry should be considered only if the stock stabilizes near 1,700–1,730 ₹ with reversal signals. Exit strategy: book profits near 1,880–1,900 ₹ or cut losses if the price falls below 1,680 ₹. Traders should remain cautious and adopt strict stop-loss discipline.

I can also prepare a comparative swing trade outlook for BEML vs BASF, AXISBANK, DMART, AIIL, AUROPHARMA, and ATUL to highlight which offers the strongest setup.