BEML - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | BEML | Market Cap | 12,500 Cr. | Current Price | 1,501 ₹ | High / Low | 2,437 ₹ |
| Stock P/E | 48.8 | Book Value | 333 ₹ | Dividend Yield | 0.71 % | ROCE | 16.1 % |
| ROE | 10.6 % | Face Value | 5.00 ₹ | DMA 50 | 1,687 ₹ | DMA 200 | 1,840 ₹ |
| Chg in FII Hold | -0.31 % | Chg in DII Hold | -0.15 % | PAT Qtr | -22.7 Cr. | PAT Prev Qtr | 54.8 Cr. |
| RSI | 35.5 | MACD | -55.4 | Volume | 2,47,617 | Avg Vol 1Wk | 2,75,115 |
| Low price | 1,226 ₹ | High price | 2,437 ₹ | PEG Ratio | 1.65 | Debt to equity | 0.24 |
| 52w Index | 22.7 % | Qtr Profit Var | -192 % | EPS | 30.8 ₹ | Industry PE | 29.2 |
📊 The stock BEML currently shows weak potential for swing trading. Current price (₹1,501) is below both 50 DMA (₹1,687) and 200 DMA (₹1,840), indicating bearish momentum. RSI at 35.5 suggests the stock is nearing oversold territory, while MACD is strongly negative (-55.4), confirming downward sentiment. Valuation is stretched with P/E of 48.8 compared to industry average of 29.2, and quarterly PAT turned negative (-₹22.7 Cr. vs ₹54.8 Cr. previously). Volume is slightly below weekly average, showing limited participation.
💡 Optimal Entry Price: Around ₹1,400–1,450 if RSI dips closer to 30 and price stabilizes.
📉 Exit Strategy (if already holding): Consider exiting near ₹1,650–1,700 resistance zone unless strong reversal signals appear.
✅ Positive
- Strong ROCE (16.1%) and ROE (10.6%) indicate decent capital efficiency.
- Dividend yield of 0.71% provides investor return.
- Debt-to-equity ratio is low (0.24), showing financial stability.
⚠️ Limitation
- Price trading below DMA levels shows weak technical momentum.
- High P/E (48.8) compared to industry average (29.2).
- PEG ratio (1.65) suggests valuation is stretched relative to growth.
📉 Company Negative News
- Quarterly PAT turned negative (-₹22.7 Cr. vs ₹54.8 Cr.).
- FII holding decreased (-0.31%) and DII holding decreased (-0.15%).
📈 Company Positive News
- EPS of ₹30.8 reflects a solid earnings base despite recent losses.
- Dividend yield of 0.71% adds shareholder value.
🏭 Industry
- Industry P/E at 29.2 shows peers trade at lower valuations.
- Capital goods sector remains cyclical with moderate growth outlook.
🔎 Conclusion
BEML is fundamentally stable but currently lacks strong momentum for swing trading. Entry near ₹1,400–1,450 may be considered cautiously, but exit near ₹1,650–1,700 is advisable unless volume and technical indicators improve significantly.