Rs 15.50 Dividend Declared: Defence PSU In A Sweet Spot, Accumulate For TP Rs 4004: PL

Leading brokerage firm Prabhudas Lilladher has recommended accumulate call to defence sector PSU BEML Ltd share with target price of Rs 4004 per share. Current market price of BEML Ltd share on BSE is Rs 3699.95 per share with intraday fall of 2.04%. The PSU has a market capitalisation of Rs 15,408.26 crore. BEML share offered return of 15.71% in last 1-week only and soared 159% in last 1-year. More details below:

Prabhudas Lilladher Recommends Accumulate Call: The brokerage firm sought to downgrade the rating of BMEL to accumulate from buy with revised target price of Rs 4004 from earlier Rs 3345 apiece. According to the analyst, "BEML is in a sweet spot to capture long-term growth on the back of 1) strong railway & defence capex in India 2) healthy order prospects in modernization of defence vehicles (HMVs, ARVs, etc.), 3) large tender pipeline for metro & Vande Bharat rolling stock, and 4) ramp up in margins on account of scale-up in execution. The stock is currently trading at a P/E of 39.9/29.4 FY25/26E. We value the stock at a P/E of 31x FY26E (26x FY26E earlier) owing to healthy order prospects and improving margin outlook. Downgrade to 'Accumulate'."

BEML Ltd Announced Dividend: The BSE filing of the company stated on May 12, "the Board of Directors have recommended Final Dividend of Rs.15.50 per equity share (i.e.155 % of paid-up share capital)."

BEML Q4 Quarterly Results: BEML declared its consolidated profit for the quarter ended March 31, 2024 at Rs 256.8 crore, up 62.85% year-on-year (YoY) as compared to Rs 157.69 crore declared in the corresponding quarter of last year. It declared March 2024 quarter consolidated revenue from operations at Rs 1513.65 crore, up 9.05% as against Rs 1387.9 crore declared in the similar quarter of last year.

EPS of BEL arrived at 61.66 for March 2024 quarter from 37.87 in March 2023. The company announced its total income at Rs 1518.2 crore for the quarter under review from Rs 1406.9 crore. Meanwhile, total expenses for March 2024 quarter arrived at Rs 1170.6 crore from Rs 1129.3 crore in March 2023.

BEML Share Performance: The 52-week high price of BEML Ltd share on BSE 4139.40 apiece (as on 02/02/2024) and 52-week low price is Rs 1400.00 per share (as on 26/05/2023). The company has a market capitalisation of Rs 15,408.26 crore. BEML shares soared 30% YTD, gained 65% in 6-months, surged 159% in last 1-year and 218% in last 2-years, and offered attractive return of 428% in last 5-years.

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.

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