Buy BEML, target price Rs 1614: Nuvama Wealth

Nuvama Wealth brokerage has buy call on BEML Ltd. with a target price of Rs 1614. The current market price of BEM is Rs 1520.8. Nuvama Wealth brokerage recommended to keep stop loss at Rs 1435.65.

BEML., incorporated in the year 1964, is a Mid Cap company (having a market cap of Rs 6350.79 Crore) operating in Engineering sector.

BEML key Products/Revenue Segments include Railway Items, Earth Moving Equipments, Spare Parts & Others, Defence Items, Other Operating Revenue, Sale of services, Scrap, Wind Energy, Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1406.90 Crore, up 35.33 % from last quarter Total Income of Rs 1039.59 Crore and down -16.50 % from last year same quarter Total Income of Rs 1684.94 Crore. Company has reported net profit after tax of Rs 157.69 Crore in latest quarter.

The company’s top management includes Mr.Amit Banerjee, Mr.M V Rajasekhar, Mr.Ajit Kumar Srivastav, Mrs.Balmuri Vanitha, Mr.Anil Jerath, Mr.Surendra Prasad Yadav, Mr.Arun Daga, Mr.Vikas Kakatkar, Mr.Siva Makutam. Company has V Krishnan & Co. as its auditors. As on 31-03-2023, the company has a total of 4 Crore shares outstanding.

Investment Rationale
Given a close above 200DMA last month and since then has been holding its neck above the same.

Promoter/FII Holdings
Promoters held 54.03 per cent stake in the company as of 31-Mar-2023, while FIIs owned 5.44 per cent, DIIs 19.72 per cent.