BEML IN ( BEML Limited) LongBEML is the second largest manufacturer of earthmoving equipment in Asia
BEML manufactures a wide range of products including:
Earthmoving Equipment: Bulldozers, Excavators, Dump Trucks, Motor Graders.
Mining Equipment: Underground Mining Machines, Road Headers.
Rail: Metro Coaches, Electric Multiple Units, Vande Bharat Trains.
Defence Equipment: High Mobility Vehicles, Missile Systems, Aerospace Equipment
Since the Government of India holds 54% stake in the company, BEML receives significant support from the government, especially in the defence and infrastructure sector. This provides the company with stability and access to large government contracts
The company recently received an order for LHB coaches worth and an order for High Mobility Vehicles worth from the Ministry of Defence.
The company's current order book is over INR 16,700 crore, which provides visibility of earnings for the coming years
The company pays out about 30% of its profits as dividends. The dividend yield is small and can be considered as an additional bonus to the growing business. The dividend growth will continue in the coming years
The defense complex will be in great demand in the country in the next decade
The company's profit has been growing at an average rate of 35.7% per annum over the past five years. We expect the positive dynamics in this parameter to continue.
In terms of the Technical picture, the price is testing the support level of the ascending trend line, and a double bottom is also visible so far.
