BEML - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | BEML | Market Cap | 15,310 Cr. | Current Price | 1,836 ₹ | High / Low | 2,437 ₹ |
| Stock P/E | 59.8 | Book Value | 333 ₹ | Dividend Yield | 0.58 % | ROCE | 16.1 % |
| ROE | 10.6 % | Face Value | 5.00 ₹ | DMA 50 | 1,689 ₹ | DMA 200 | 1,797 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.32 % | PAT Qtr | -22.7 Cr. | PAT Prev Qtr | 54.8 Cr. |
| RSI | 64.8 | MACD | 68.2 | Volume | 2,52,115 | Avg Vol 1Wk | 2,78,778 |
| Low price | 1,355 ₹ | High price | 2,437 ₹ | PEG Ratio | 2.02 | Debt to equity | 0.24 |
| 52w Index | 44.5 % | Qtr Profit Var | -192 % | EPS | 30.8 ₹ | Industry PE | 34.7 |
Analysis: BEML shows moderate swing trade potential. The RSI (64.8) suggests the stock is nearing overbought levels, while MACD remains positive, indicating short-term bullish momentum. The current price (₹1,836) is above both the 50 DMA (₹1,689) and 200 DMA (₹1,797), reflecting strength. However, the sharp quarterly profit decline (-192%) and high P/E (59.8 vs industry 34.7) raise caution. Liquidity is decent with volumes close to average, supporting trade execution.
Optimal Entry Price: ₹1,750–₹1,800, near the 200 DMA support zone.
Exit Strategy (if already holding): Consider profit booking around ₹2,200–₹2,250 unless momentum breaks above ₹2,300.
✅ Positive
- ROCE at 16.1% and ROE at 10.6% show efficient capital use.
- Debt-to-equity ratio of 0.24 indicates strong balance sheet stability.
- Institutional investors (FII + DII) increased holdings slightly, signaling confidence.
⚠️ Limitation
- High P/E (59.8) compared to industry average (34.7) makes valuation expensive.
- PEG ratio of 2.02 suggests growth does not fully justify valuation.
- Dividend yield is low (0.58%), limiting passive income.
📉 Company Negative News
- Quarterly PAT dropped to -₹22.7 Cr. from ₹54.8 Cr., showing weak earnings momentum.
- EPS growth stagnation raises concerns about sustainability.
📈 Company Positive News
- Strong 52-week return of 44.5% highlights investor interest.
- Healthy trading volumes ensure liquidity for swing trades.
🏭 Industry
- Industry P/E is 34.7, lower than BEML’s valuation, suggesting peers are cheaper.
- Defense and infrastructure sector outlook remains positive, supporting long-term demand.
🔎 Conclusion
BEML is a moderately attractive swing trade candidate. Technicals show short-term strength, but fundamentals (profit decline, high valuation) limit upside. Entry near ₹1,750–₹1,800 offers better risk-reward, with exit around ₹2,200–₹2,250. Traders should remain cautious and monitor earnings recovery before aggressive positioning.