Buy Beml: IIFL Securities's Target Price Rs 3750

IIFL Securities has issued a buy recommendation for BEML, with a target price of Rs 3750, indicating a potential upside of approximately 3.6% from the current market price of Rs 3619.85. The brokerage firm believes that BEML is well-positioned to benefit from the government's focus on infrastructure development and the company's strong order book. Investors may consider this buy call as a potential opportunity to invest in a company with growth potential in the infrastructure sector.

About Beml:

Bharat Earth Movers Limited (BEML), a government-owned company, is a leading Indian manufacturer of heavy earth-moving equipment, defence, transportation, and mining equipment. Incorporated in 1964, BEML operates in five business segments: Defence, Infrastructure, Mining & Construction, Rail & Metro, and Aerospace & Others. The company's defence products include armoured vehicles, artillery systems, and tank transporters. BEML is headquartered in Bengaluru, Karnataka, and has manufacturing facilities across India. It has a strong domestic and international presence, with exports to over 65 countries.

52 Week Price Trend:

BEML (Bharat Earth Movers Limited) is a public sector undertaking under the Ministry of Defence, Government of India. The company is engaged in the manufacturing of earthmoving equipment, mining equipment, railways and transportation system, and defence equipment. BEML's current market price (CMP) is Rs 3619.85. The stock has traded within a 52-week high of Rs 4144.25 and a 52-week low of Rs 1128. The stock has been consolidating in a range between Rs 3500 and Rs 3800 for the past few weeks. The stock has resistance at Rs 3800 and support at Rs 3500. BEML is a fundamentally strong company with a strong order book and healthy financials. The company is expected to benefit from the government's focus on infrastructure development and defence spending.

Stratzy's MOST Analysis:

BEML's BB- rating from Stratzy's MOST framework indicates Medium Fundamental Risks. The framework assesses companies based on Management, Outlook, Safety, and Trend. BEML's rating suggests potential weaknesses in one or more of these areas, such as concerns about management effectiveness, uncertainties in future prospects, low safety margins, or unfavorable industry trends. This rating highlights the need for investors to conduct thorough due diligence and carefully consider potential risks before making investment decisions.

Company's Fundamentals:

BEML (NSE: BEML) is a government-owned company engaged in manufacturing and supplying a wide range of products for the defense and non-defense sectors. As of today, the stock trades at a price-to-earnings (PE) ratio of 70.05, indicating that investors are willing to pay Rs. 70.05 for every Rs. 1 of earnings. The price-to-book (PB) ratio of 5.4 suggests that the market value of BEML's assets is 5.4 times their book value. The dividend yield of 0.33% implies that investors can earn Rs. 0.33 for every Rs. 100 invested in BEML, making it a low-yield stock.

Fundamental and Technical information provided in this blog were last updated on 11 May, 2024

Disclaimer: The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.