Buy Beml, target price Rs 4280: IIFL Securities

On November 6th, IIFL Securities issued a buy recommendation for Beml with a target price of Rs 4280, representing a potential upside from its current market price of Rs 4175.05. The brokerage firm believes that Beml is well-positioned to benefit from increased government spending on defense and infrastructure projects. The company's strong order book and improving financial performance are seen as key drivers of future growth.

About Beml:

BEML, short for Bharat Earth Movers Limited, is a leading Indian state-owned defence equipment manufacturer, primarily engaged in the design, development, production, and sale of a wide range of defense and aerospace products. Listed on the National Stock Exchange (NSE), BEML specializes in the manufacture of earthmoving equipment, railway coaches and wagons, tanks, armored vehicles, artillery guns, and other defense-related products. With a sprawling network of manufacturing facilities across India, BEML plays a pivotal role in catering to the needs of the Indian defense and aerospace sectors.

52 Week Price Trend:

BEML's current market price (CMP) stands at Rs 4175.05, indicating a significant appreciation of 273% compared to its recent 52-week low of Rs 1128. While the stock briefly surpassed its 52-week high of Rs 4144.25 during this period, it recently experienced a slight setback, resulting in its current price level. Nonetheless, BEML's strong financial performance, driven by increased demand for its products in the mining and construction sectors, has contributed to its overall positive price trajectory.

Stratzy's MOST Analysis:

BEML has been rated BB- by Stratzy's MOST framework, indicating medium fundamental risks. This assessment considers the company's management, outlook, safety, and trend. The framework assigns scores to each pillar, with the overall rating reflecting the cumulative risk profile. The BB- rating suggests that while BEML has some strengths, investors should be aware of potential concerns regarding its management, outlook, safety, or industry trends.

Company's Fundamentals:

BEML, a company listed on the National Stock Exchange (NSE), currently has a stock price-to-earnings (PE) ratio of 70.05. This indicates that for every rupee of earnings, investors are paying 70.05 rupees for the company's stock. BEML's price-to-book (PB) ratio is 5.4, meaning that the market value of the company's assets is 5.4 times higher than its book value. Finally, the company's dividend yield, which represents the percentage of the share price that is paid out as dividends, is 0.33%. This means that for every 100 rupees invested in BEML, investors can expect to receive 0.33 rupees in dividends.

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

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