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Espresso shot of the day – BEML Ltd up by 20 percent)

Espresso shot of the day – BEML Ltd up by 20 percent

March 08, 2021

BEML LTD 1406.25 (+20.00%)  BSE – INE258A01016| 8TH MARCH 2021


BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 as a Public Sector Undertaking for manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The company has partially disinvested and presently Government of India owns 54 percent of total equity and rest 46% is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and Employees. BEML Limited, a ‘Schedule-A’ Company, plays a pivotal role and serves India’s core sectors like Defence, Rail, Power, Mining and Infrastructure. The company started with a modest turnover of Rs 5 crores during 1965 and today, thanks to its diverse business portfolio, the company has been able to achieve a turnover of more than Rs 3,500 crores. The company operates under three major Business verticals viz., Mining & Construction, Defense and Rail & Metro. The three verticals are serviced by nine manufacturing units located at Bangalore, Kolar Gold Fields (KGF), Mysore, Palakkad and Subsidiary - Vignyan Industries Ltd, in Chikmagalur District.

Recent Drivers

  • BEML Limited reported quarterly Net Profit at Rs 27.67 crores in December 2020 up 552.59% from Rs 4.24 crores in December 2019.
  • BEML Limited reported net Sales at Rs 728.21 crores in December 2020 up 5.1% from Rs 85 crores in December 2019.
  • BEML Limited remains in focus, with the government's stake sale in the organization picking up pace. Companies such as Tata Motors, Mahindra and Ashok Leyland are looking to buy a 26% stake in BEML Limited. Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd may also submit expressions of interest for stake in BEML Limited.
  • BEML Limited has entered into a partnership with the Indian Institute of Technology Kanpur for joint indigenous development and manufacture of a 25-kg class tactical UAV for the Armed forces.
  • BEML Limited has also signed a Memorandum of Understanding (MoU) with SKAT Systems, Russia, for joint manufacture of high altitude UAVs for Indian and global requirements and another with S’YOMKA S VOZDUHA, Russia, for the manufacture of marine drones and anti-drone systems.
  • At Aero India 2021, BEML Ltd signed a MoU with CSIR-NAL for cooperation in the areas of advance composite and autoclaves, mini unmanned aerial vehicles and design and analysis of aircraft structure and systems.
  • During the Aero India 2021 air show, BEML Limited entered into a number of MOUs with foreign and Indian companies.
  • BEML Limited has also entered into a MoU with Adani Defence Systems & Technologies Limited to provide mobility systems for armed vehicles such as wheels, armoured personal carriers, infantry combat vehicles, and main battle tanks, in addition to the development and production of jigs and fixtures for UAVs, air-borne structures, ground handling, and ground support equipment for airports.
  • In January 2021, BEML Limited received orders from Ministry of Defence (MoD) for supply of High Mobility vehicles, at an approximate value of Rs 758 crores.
 (Sources: MoneyControl, Urban Transport News, Frontline, Livemint)

Technical Force*

  • S&P BSE ALL CAP month till date gain up by 3.23%
  • Traded on new 52- week high 1406.25
  • Touched upper circuit 1406.25
  • Spurt in volume by more than 3.33 times compares to previous vol. 3 months avg qty –64,458
  • Quantity traded 3, 42,918. Deliverable quantity -64,746(18.88%)
  • Stock price has jumped more than 250% from one year low level – 369.60 24 March 2020
  • Daily RSI (14) is in overbought territory for 6 periods ago, RSI central line crossed above central line 24 periods ago
  • 52 -week high – 1406.25 | 52- week low- 369.60

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

1952.60

1516.30

1242.20

805.90

531.80

95.50

-

-

Fibonacci Pivot

1516.30

1244.93

1077.27

 969.29

805.90

642.51

534.53

366.87

95.50


Today’s Close

1406.25

SMA

BSE

10 DAY

1146.30

20 DAY

1058.59

50 DAY

995.44

200 DAY

744.10

Some Key Ratios (Source: BSE)

Some Key Ratios (Source: BSE)

Market Cap: 5856.26 crores

PE: 48.23

OPM%: 6.27

ROE%: 4.81

Prev. Close: 1171.90

Promoters holding : 54.03

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.