Buy Beml, target price Rs 4670: Stratzy
Stratzy has issued a buy call for BEML, a defense equipment manufacturer, with a target price of Rs 4670. This represents a potential upside of over 10% from the current market price of Rs 4230.3. The move follows BEML's recent order win of Rs 2,000 crore for the supply of T90 tanks to the Indian Army. Stratzy believes that this order, along with other recent developments, positions BEML for strong growth in the coming quarters. The company's strong order book and improving execution capabilities are expected to drive earnings growth, supporting the bullish outlook.
About Beml:
BEML (Bharat Earth Movers Limited) is a public sector company listed on the National Stock Exchange (NSE). It is engaged in the design, development, manufacture, and sale of a wide range of products and services, including earthmoving equipment, defense equipment, railway equipment, and special purpose vehicles. BEML's operations are spread across India, with manufacturing facilities in Kolar Gold Fields, Mysore, Yelahanka, and Palakkad. The company has a strong customer base that includes the Indian Army, Navy, Air Force, and various state-owned entities. BEML is also a significant exporter of its products to over 60 countries worldwide.
52 Week Price Trend:
Beml (NSE: BEML) is currently trading at Rs 4230.3, marginally above its 52-week high of Rs 4144.25. The stock has witnessed a significant upswing since hitting its 52-week low of Rs 1128, indicating a strong rally. The company's solid financial performance and growth prospects have likely contributed to this surge, attracting investor interest. However, it is crucial to note that the stock has been volatile in the past, and investors should exercise caution and conduct thorough research before making investment decisions.
Stratzy's MOST Analysis:
BEML has been assigned a BB- rating by Stratzy's MOST framework. This indicates that BEML has medium fundamental risks. The framework evaluates four key pillars: Management, Outlook, Safety, and Trend. BEML's performance across these pillars has resulted in an overall rating of BB-, suggesting that investors may face moderate risks when investing in the company.
Company's Fundamentals:
BEML (NSE: BEML) is a leading defense and infrastructure company in India. Its financial ratios indicate its valuation, profitability, and dividend distribution. The stock PE (price-to-earnings) ratio of 70.05 implies that the stock is trading at 70 times its annual earnings. The PB ratio (price-to-book) ratio of 5.4 indicates that the market value of the company is 5.4 times its book value (assets minus liabilities). The dividend yield of 0.33% represents the annual dividend per share as a percentage of the current stock price, indicating a low level of dividend income. These ratios suggest that BEML is currently overvalued in terms of earnings and book value but offers a relatively low dividend return.
Fundamental and Technical information provided in this blog were last updated on 08 Nov, 2024
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