ULJK Securities initiates 'neutral' on BEML

ULJK Securities has initiated coverage on BEML and has assigned a 'neutral' rating on the company. BEML was trading 1.1% lower at Rs 363.45 on the BSE on Wednesday. "The company has an order book worth Rs 3,800 crore, growing to Rs 5,000 crore after finalization of pending orders. The company has guidance of Rs 36,000 million (gross sales) in FY 2009E and Rs 50,000 million gross turnover in 2014 given the dynamic growth of mining & construction market.

We believe that the company has potential to overperform the guidance given the potential investments in the infrastructure and a preferred defense equipment provider to the Department of Defense Research and Development (DRDO). We are at present assigning neutral rating for the company. After the second quarter results we will analyse the company and might change the rating assigned," the ULJK Securities report said.