Rs 15.50/Sh Dividend: Defence PSU Slips 19% In 1-Month, PL Upgrades To Accumulate For TP Rs 4484

Defence sector public sector undertaking BEML Ltd shares witnessed correction of 19.10% in last 1-monthto settle at Rs 4019.75 per share on BSE on August 9. BEML shares offered return of 98% in last 1-year and gained 228% in last 2-years. The company's market capitalisation is Rs 16,740.05 crore. Its order book stood at Rs118.1bn (+20.6% YoY), of which orders worth Rs 34.4bn are executable in the remainder of FY25. The company recommended a final dividend of Rs 15.50 per share with record date yet to be announced. Check details below:

PL Suggests Accumulate Call: According to the brokerage firm, "we upgrade the rating to 'Accumulate' from 'Hold' with a revised TP of Rs 4,484 (Rs4,520 earlier) following the recent sharp correction in stock price. BEML reported decent quarterly performance with 9.9% YoY revenue growth and 85bps YoY improvement in EBITDA margin. Management reiterated FY25 guidance of ~20% revenue growth and Rs 200-300 billion closing order book, with major tenders expected in the Rail & Metro segment, including tenders pushed back from last year. The company is expected to complete the order for 10 Vande Bharat sleeper trains in FY25, with the first one set to be ready in Aug-24. BEML also continues to focus on its indigenous tank engine development program for both domestic & export markets, with a view to make India a hub for engines & power packs."

BEML Ltd Recommended Dividend: 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 5489.15 per share (05/07/2024) and 52-week low price is Rs 1904.50 per share (as on 26/10/2023), respectively. BEML shares declined 10% in last 2-weeks, gained 42% year-to-date, offered attractive returns of 262% in last 3-years, and zoomed 491% in last 5-years.

BEML Q1 Performance: The Defence PSU declared a narrowing of its consolidated net loss to Rs 70.47 crore for the June 2024 quarter as against the consolidated net loss of Rs 75.01 crore in the corresponding period of last year. Its consolidated income for the April-June period surged to Rs 634.61 crore as against Rs 578.11 crore in the similar quarter of 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.