Buy Beml, target price Rs 4280: IIFL Securities

IIFL Securities recommends buying BEML shares, projecting a target price of Rs 4280. The current market price of BEML is marginally lower at Rs 4264.65. This implies a potential upside of 0.36% for investors who follow IIFL Securities' advice. The research firm believes BEML's strong order book and government support will drive its future growth.

About Beml:

Bharat Earth Movers Limited (BEML) is a multinational engineering and manufacturing company headquartered in Bengaluru, India. Founded in 1964, BEML is a public sector undertaking under the Ministry of Defence. The company manufactures a wide range of products including earthmoving equipment, construction equipment, rail coaches, defence vehicles, and mining equipment. BEML operates manufacturing facilities in Kolar Gold Fields, Mysore, and Palakkad. The company has a strong presence in the Indian market and exports its products to over 50 countries. BEML is listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

52 Week Price Trend:

BEML (NSE: BEML) is a leading Indian public sector company that manufactures heavy equipment and machinery. After reaching a 52-week high of Rs 4144.25, the stock has experienced a significant surge, reaching Rs 4264.65 at the current CMP. This growth represents a remarkable turnaround from its 52-week low of Rs 1128. The company's strong order book, focus on indigenization, and government support have contributed to this impressive performance. BEML's current valuation reflects the market's confidence in its long-term growth prospects and its role as a strategic player in India's defense and infrastructure sectors.

Stratzy's MOST Analysis:

BEML's BB- rating in Stratzy's MOST framework indicates a medium fundamental risk. This rating is based on the company's management, outlook, safety, and trend. BEML's management team has been evaluated as having a good understanding of the industry and a sound track record. The company's outlook is considered stable, with a focus on growth in the coming years. BEML's safety record is satisfactory, with no major accidents or incidents reported recently. The company's financial trend is stable, with revenue and profit growth in recent years.

Company's Fundamentals:

BEML (NSE: BEML) exhibits a Stock PE ratio of 70.05, indicating that investors are willing to pay 70.05 times the company's annual earnings per share to own its stock. The PB Ratio of 5.4 suggests that investors are paying 5.4 times the company's book value for each share. Meanwhile, the Dividend Yield of 0.33% implies that investors receive a 0.33% return on their investment in the form of dividends. These metrics provide insights into BEML's valuation, financial performance, and dividend payout policy, helping investors assess its investment potential.

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

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