Best Stocks to Buy Today : IIFL Securities's call on Beml - April 08

IIFL Securities has recommended buying Beml shares at the current market price of Rs 3480, with a target price of Rs 3580. The brokerage firm is bullish on the stock due to its strong order book, improving margins, and government support for the defense sector. Beml is a leading manufacturer of defense and aerospace equipment in India, and is expected to benefit from the government's focus on modernizing the military. The company also has a strong order book of over Rs 20,000 crore, which provides visibility for future growth.

About Beml:

BEML Limited (Bharat Earth Movers Limited) is an Indian public sector undertaking (PSU) that designs, develops, manufactures, and markets a wide range of products, including earthmoving, mining, and construction equipment. The company also provides engineering and maintenance services. BEML was established in 1964 and is headquartered in Bangalore, India. It has manufacturing facilities in Bangalore, Kolar Gold Fields, and Mysore. BEML's products are used in various industries, including mining, construction, agriculture, and infrastructure development. The company is a leading supplier of earthmoving and mining equipment to the Indian market and has a growing presence in overseas markets.

52 Week Price Trend:

BEML (NSE: BEML), a leading defense and aerospace company, has seen a significant drop in its stock price from its 52-week high of Rs 4144.25. As of today, BEML's CMP stands at Rs 3480, reflecting a correction of approximately 16%. The 52-week low price of Rs 1128 indicates a potential upside of nearly 200% from the current levels. Investors may consider this as an opportunity to accumulate BEML shares at a relatively discounted price, especially given the long-term growth potential in the defense and aerospace sectors. However, it is important to conduct thorough research and due diligence before making any investment decisions.

Stratzy's MOST Analysis:

BEML has been assigned a BB- rating by Stratzy's MOST framework, indicating medium fundamental risks. This rating is determined by evaluating the company's management, outlook, safety, and trend, with each pillar receiving its own score. The BB- rating suggests that BEML has some areas of concern, such as management stability or financial performance, but overall, the company presents a moderate level of fundamental risk compared to other stocks.

Company's Fundamentals:

BEML (NSE: BEML), a heavy machinery manufacturer, currently trades with a stock PE (Price-to-Earnings) ratio of 70.05. This indicates that investors are willing to pay 70.05 times the company's annual earnings for each share of stock. BEML also has a PB (Price-to-Book) ratio of 5.4, suggesting that its market value is 5.4 times its book value (total assets minus total liabilities). The company offers a dividend yield of 0.33%, which is relatively low compared to the industry average. These ratios provide insights into the company's valuation and profitability, helping investors make informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 06 Apr, 2024

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