Rs 15.50 Dividend Soon: Defence PSU Jumps 218.64% From Lows, PL Recommends Hold

Defence sector public sector undertaking BEML Ltd. shares witnessed 17.23% rally in trade today to settle at Rs 4722.20 per share. BEML Ltd share hit 52-week high in trade today. Shares of leading defence firms witnessed rally in trade today soon after Defence Minister Rajnath Singh declared on Thursday that India seeks to elevate its defence exports to surpass Rs 50,000 crore with next 5-years span. BEML shares offered return of 211% in last 1-year and gained massively by 70% in just last 3-months. The company has a market capitalisation of Rs 19,665.37 crore. BEML Ltd shares have already gained 218.64% from 52-week low price of Rs 1500.00 per share. Check more details below:

PL Recommends Hold Call: Earlier last month brokerage firm Prabhudas Lilladher recommended hold rating to BEML share with target price of Rs 4,520 per share from the earlier price target of Rs 4004 per share. According to the analyst, "We believe BEML is in a sweet spot to capture long-term growth on the back of 1) strong railway & defense capex in India, 2) healthy order prospects in the modernization of defense vehicles (HMVs, ARVs, etc.), 3) large tender pipeline for metro & Vande Bharat rolling stock, and 4) ramp-up in margins on account of execution scale-up. We revise the TP to Rs4,520 (Rs4,004 earlier), valuing the stock at a P/E of 35x FY26E (31x FY26E earlier) factoring in improving technological capabilities and the new streamlined organizational structure. We are long-term positive on the stock; however, we downgrade the rating to 'Hold' from 'Accumulate' given the recent sharp rally in stock price."

BEML Ltd Recommended Dividend, Yet To Declare Record Date: As per the regulatory filing of the company issued as on May 12, BEML announced a final dividend of Rs 15.50 per equity share (i.e.155 % of paid-up share capital).

BEML Ltd Share Performance & Return: The 52-week high price of BEML shares is Rs 4779.55 per share (14/06/2024) and 52-week low price is Rs 1500.00 per share (as on 15/06/2023), respectively. BEML shares offered return of over 18% in last 1-week, gained 84% in last 6-months, soared 360% in last 2-years, and offered gain of 532% in last 5-years.

BEML Q4 Performance: The defence PSU declared growth of 62.9% year-on-year (YoY) in its consolidated net profit to Rs 256.8 crore for the quarter ended March 31, 2024 amid strong operating figures. BEM announced a surge of 9% YoY in its revenue from operations to Rs 1513.7 crore. BEML announced the EBITDA at Rs 370.04 crore, up 29.2% with margins improving 24.5% from 20.7% on the basis of year-on-year (YoY). For the whole year for FY 2023, the defence PSU announced net profit surged 78.46% YoY to Rs 281.77 crore as against Rs 157.89 crore reported in the last fiscal ended March 2023. The sales surged 3.98% YoY to Rs 4054.32 crore as compared to Rs 3,898.95 crore in the year ago period.

About: 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 is a listed on both Exchanges (BSE & NSE) with Government of India owning 54.03% and rest 44.97% is held by Financial Institutions, Foreign Institutional Investors, Banks, Public and Employees. BEML Limited, a 'Schedule 'A' Company under Ministry of Defence, Govt. Of India, plays a pivotal role and serves India's core sectors like Defence, Rail, Power, Mining and Infrastructure, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.