BEML - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.9

📈 BEML shows strong sector momentum and technical recovery. Entry near ₹2,130 is optimal. If already held, consider exiting around ₹2,350–₹2,400.

📈 Positive

• 📊 MACD at 11.9 and RSI at 47.1 suggest improving momentum.
• 📈 Trading above DMA 50 and DMA 200 confirms bullish crossover.
• 💰 ROCE of 16.1% and ROE of 10.6% reflect solid capital efficiency.
• 📉 Low debt-to-equity ratio of 0.08 indicates financial strength.
• 📈 FII holding increased by 0.15%, showing foreign investor interest.

⚠️ Limitation

• 📉 Quarterly PAT dropped from ₹288 Cr. to ₹-63.9 Cr., raising concerns.
• 💸 High P/E of 59.8 vs industry average of 34.3 suggests overvaluation.
• 📉 Volume below average (3.0L vs 3.8L), indicating reduced liquidity.
• 📉 PEG ratio of 2.02 implies expensive growth expectations.
• 📉 DII holding declined by 0.26%, signaling cautious domestic sentiment.

📉 Company Negative News

• 📉 BEML reported a sharp quarterly loss, impacting investor confidence.

📈 Company Positive News

• 📈 BEML executed a 1:2 stock split to enhance liquidity and retail participation

  Business Today

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• 📈 Analysts expect strong movement amid festive demand and defense sector orders

  Zee Business

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🛡️ Industry

• 🛡️ Defense stocks rallied up to 7% recently due to faster procurement approvals and ₹1 lakh Cr. allocation

  Business Standard

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• 📊 Industry P/E of 34.3 suggests moderate valuation across peers.

✅ Conclusion

• 📈 BEML is a good swing trade candidate with sector tailwinds and technical recovery.
• 📉 Optimal entry price: ₹2,130–₹2,150 (near DMA 50 and support).
• 📈 Exit target: ₹2,350–₹2,400 (near recent highs and resistance).
• 📌 Watch for volume surge and RSI crossing 50 before entry.

Sources

Business Today

+5

I can chart BEML’s MACD and RSI trends to visualize its momentum shift—just let me know.