BEML - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | BEML | Market Cap | 15,043 Cr. | Current Price | 1,806 ₹ | High / Low | 2,437 ₹ |
| Stock P/E | 58.7 | Book Value | 333 ₹ | Dividend Yield | 0.59 % | ROCE | 16.1 % |
| ROE | 10.6 % | Face Value | 5.00 ₹ | DMA 50 | 1,683 ₹ | DMA 200 | 1,796 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.32 % | PAT Qtr | -22.7 Cr. | PAT Prev Qtr | 54.8 Cr. |
| RSI | 62.3 | MACD | 68.1 | Volume | 2,50,577 | Avg Vol 1Wk | 2,90,063 |
| Low price | 1,355 ₹ | High price | 2,437 ₹ | PEG Ratio | 1.98 | Debt to equity | 0.24 |
| 52w Index | 41.7 % | Qtr Profit Var | -192 % | EPS | 30.8 ₹ | Industry PE | 34.6 |
📉 BEML is trading at ₹1,806, above its 50 DMA (₹1,683) but slightly below the 200 DMA (₹1,796), showing mixed signals. RSI at 62.3 indicates bullish momentum but nearing overbought territory. MACD at 68.1 confirms positive divergence. Bollinger Bands suggest price testing the upper band, signaling volatility. Current volume (2,50,577) is slightly below the 1-week average (2,90,063), showing weaker participation despite momentum.
🔑 Short-term momentum signals: Support lies near ₹1,680–₹1,700 (DMA zone), resistance around ₹1,850–₹1,900. Entry zone is closer to ₹1,680–₹1,700 if support holds. Exit zone should be considered near ₹1,850–₹1,900. The stock is in a consolidation phase with bullish bias but fragile fundamentals.
✅ Positive
- ROCE (16.1%) and ROE (10.6%) show moderate profitability.
- Dividend yield of 0.59% adds shareholder value.
- EPS of ₹30.8 supports earnings base.
- Institutional inflows: FII (+0.08%) and DII (+0.32%) increased slightly.
⚠️ Limitation
- High P/E (58.7) vs industry average (34.6) indicates stretched valuation.
- PEG ratio of 1.98 suggests expensive growth prospects.
- Quarterly profit highly volatile with sharp decline.
- Volume below average reduces conviction in momentum signals.
📉 Company Negative News
- Quarterly PAT dropped sharply (₹-22.7 Cr vs ₹54.8 Cr).
- Profitability highly volatile (-192% variation).
📊 Company Positive News
- Institutional inflows (FII/DII) show minor confidence.
- Technical strength with RSI and MACD positive.
🏭 Industry
- Industry P/E at 34.6 highlights sector trading at lower multiples.
- Capital goods sector remains cyclical, linked to infrastructure demand.
📝 Conclusion
BEML is consolidating with short-term bullish signals but faces weak fundamentals and volatile earnings. Entry near ₹1,680–₹1,700 offers favorable risk-reward, with exit around ₹1,850–₹1,900. Caution is advised due to recent losses and stretched valuations.
Would you like me to extend this into a sector overlay benchmarking module comparing BEML against other capital goods peers for relative strength and valuation?