BEML - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | BEML | Market Cap | 13,003 Cr. | Current Price | 1,560 ₹ | High / Low | 2,437 ₹ |
| Stock P/E | 50.8 | Book Value | 333 ₹ | Dividend Yield | 0.68 % | ROCE | 16.1 % |
| ROE | 10.6 % | Face Value | 5.00 ₹ | DMA 50 | 1,695 ₹ | DMA 200 | 1,844 ₹ |
| Chg in FII Hold | -0.31 % | Chg in DII Hold | -0.15 % | PAT Qtr | -22.7 Cr. | PAT Prev Qtr | 54.8 Cr. |
| RSI | 40.5 | MACD | -52.5 | Volume | 3,30,185 | Avg Vol 1Wk | 2,72,764 |
| Low price | 1,226 ₹ | High price | 2,437 ₹ | PEG Ratio | 1.71 | Debt to equity | 0.24 |
| 52w Index | 27.6 % | Qtr Profit Var | -192 % | EPS | 30.8 ₹ | Industry PE | 30.1 |
📈 Chart & Trend Analysis: BEML is trading below both its 50 DMA (1,695 ₹) and 200 DMA (1,844 ₹), with the current price at 1,560 ₹. This indicates bearish bias and short-term weakness.
📊 Momentum Indicators: RSI at 40.5 shows weak momentum, leaning towards oversold territory. MACD at -52.5 confirms bearish crossover, signaling continued short-term weakness.
📉 Bollinger Bands & Volume: Price is near the lower band, suggesting potential support but also weakness. Current volume (3,30,185) is slightly above weekly average (2,72,764), showing mild participation but no strong buying interest.
🔑 Support & Resistance Zones:
- Support: 1,550 ₹ (near-term), 1,226 ₹ (major low)
- Resistance: 1,695 ₹ (50 DMA), 1,844 ₹ (200 DMA), 2,000–2,100 ₹ (trendline resistance)
Optimal Entry: 1,530–1,560 ₹ (near support)
Optimal Exit: 1,695–1,844 ₹ (resistance zone)
📌 Trend Status: The stock is consolidating with bearish bias, showing weak momentum and trading below key moving averages.
Positive
- ROCE (16.1%) and ROE (10.6%) show moderate capital efficiency.
- Dividend yield of 0.68% provides shareholder returns.
- PEG ratio of 1.71 suggests reasonable valuation relative to growth.
Limitation
- Stock P/E (50.8) is higher than industry average (30.1), suggesting stretched valuation.
- Weak RSI and negative MACD show lack of momentum.
- EPS of 30.8 ₹ is modest compared to valuation.
Company Negative News
- Quarterly PAT turned negative (-22.7 Cr. vs 54.8 Cr.), showing earnings pressure.
- FII holding decreased (-0.31%) and DII holding decreased (-0.15%), reflecting reduced institutional confidence.
Company Positive News
- Dividend yield remains attractive at 0.68%.
- Stable balance sheet with low debt-to-equity ratio (0.24).
Industry
- Industry PE at 30.1 is lower than BEML’s PE (50.8), suggesting premium valuation compared to peers.
- Industrial and defense sector outlook remains cyclical, with demand tied to government projects and infrastructure growth.
Conclusion
⚖️ BEML is consolidating with bearish bias, trading below key moving averages with weak momentum signals. Fundamentals show moderate ROE/ROCE and dividend support, but negative quarterly PAT and stretched valuation limit upside. Traders may consider entry near 1,530–1,560 ₹ with exits around 1,695–1,844 ₹, but momentum confirmation is needed before aggressive positioning.
Would you like me to extend this into a peer benchmarking overlay comparing BEML against other industrial/defense sector stocks (valuation, ROE/ROCE, momentum) so you can see relative strength before deciding entry?