BSE:500048

Stock Analysis Report

Executive Summary

BEML Limited provides products and services to the mining and construction, rail and metro, and defense and aerospace sectors in India.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has BEML's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500048's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.9%

500048

-4.8%

IN Machinery

-3.9%

IN Market


1 Year Return

-12.4%

500048

-7.7%

IN Machinery

4.5%

IN Market

Return vs Industry: 500048 underperformed the Indian Machinery industry which returned -7.7% over the past year.

Return vs Market: 500048 underperformed the Indian Market which returned 4.5% over the past year.


Shareholder returns

500048IndustryMarket
7 Day-14.9%-4.8%-3.9%
30 Day-24.7%-5.4%-3.9%
90 Day-25.2%0.7%-2.1%
1 Year-11.8%-12.4%-6.3%-7.7%6.4%4.5%
3 Year-41.4%-42.7%-2.1%-5.8%19.4%12.8%
5 Year-26.3%-28.3%9.1%2.8%28.2%16.6%

Price Volatility Vs. Market

How volatile is BEML's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 years ago | Simply Wall St

February Top Growth Companies

2 years ago | Simply Wall St

February Top Growth Companies

2 years ago | Simply Wall St

February Top Growth Companies

Valuation

Is BEML undervalued compared to its fair value and its price relative to the market?

48.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500048 (₹745.1) is trading below our estimate of fair value (₹1446.91)

Significantly Below Fair Value: 500048 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500048 is poor value based on its PE Ratio (74.3x) compared to the Machinery industry average (14.3x).

PE vs Market: 500048 is poor value based on its PE Ratio (74.3x) compared to the Indian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500048's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500048 is overvalued based on its PB Ratio (1.5x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is BEML forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as BEML has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has BEML performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500048 has high quality earnings.

Growing Profit Margin: 500048's current net profit margins (1.3%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 500048's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: 500048's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500048 had negative earnings growth (-47.5%) over the past year, making it difficult to compare to the Machinery industry average (-6.2%).


Return on Equity

High ROE: 500048's Return on Equity (2%) is considered low.


Next Steps

Financial Health

How is BEML's financial position?


Financial Position Analysis

Short Term Liabilities: 500048's short term assets (₹38.3B) exceed its short term liabilities (₹18.0B).

Long Term Liabilities: 500048's short term assets (₹38.3B) exceed its long term liabilities (₹8.1B).


Debt to Equity History and Analysis

Debt Level: 500048's debt to equity ratio (18.1%) is considered satisfactory.

Reducing Debt: 500048's debt to equity ratio has reduced from 34.7% to 18.1% over the past 5 years.

Debt Coverage: 500048's debt is well covered by operating cash flow (140.2%).

Interest Coverage: 500048's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: 500048 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500048's debt is covered by short term assets (assets are 10.3x debt).


Next Steps

Dividend

What is BEML's current dividend yield, its reliability and sustainability?

0.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500048's dividend (0.67%) is higher than the bottom 25% of dividend payers in the Indian market (0.62%).

High Dividend: 500048's dividend (0.67%) is low compared to the top 25% of dividend payers in the Indian market (2.69%).


Stability and Growth of Payments

Stable Dividend: 500048's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500048's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.8%), 500048's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Deepak Hota 0

3.6yrs

Tenure

₹4,710,000

Compensation

Mr. Deepak Kumar Hota has been the Chairman and Managing Director of BEML Limited since July 1, 2016. Mr. Hota served as Director of Human Resources and Director of BEML Limited since July 1, 2013. Shri. H ...


CEO Compensation Analysis

Compensation vs Market: Deepak's total compensation ($USD65.69K) is below average for companies of similar size in the Indian market ($USD385.15K).

Compensation vs Earnings: Deepak's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Deepak Hota
Chairman & MD3.6yrs₹4.71mno data
Suraj Prakash
Director of Finance & Director1.8yrs₹3.47mno data
S. Rao
Compliance Officer & Company Secretary3.3yrs₹1.60mno data
Suresh Vastrad
Director of Rail & Metro Business and Director1.3yrs₹3.23mno data
R. Muralidhara
Director of Defence Business & Director3.9yrs₹3.89mno data
S. Ramananda
Assistant General Manager of Corporate Communications0yrsno datano data
R. Selvam
Director of Human Resources & Director0.3yrsno datano data
Joe Pulickel
Chief General Manager of (Def)3.3yrsno datano data
K. Radhakrishna
Chief General Manager of R&D - KGF Complex4.5yrsno datano data
Amit Banerjee
Chief General Manager of R&D - Bangalore Complex4.5yrsno datano data

3.5yrs

Average Tenure

Experienced Management: 500048's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Deepak Hota
Chairman & MD3.6yrs₹4.71mno data
Suraj Prakash
Director of Finance & Director1.8yrs₹3.47mno data
Suresh Vastrad
Director of Rail & Metro Business and Director1.3yrs₹3.23mno data
R. Muralidhara
Director of Defence Business & Director3.9yrs₹3.89mno data
R. Selvam
Director of Human Resources & Director0.3yrsno datano data
M. Rajasekhar
Director of Mining & Construction Business and Director1.1yrsno datano data
Gurmohinder Singh
Independent Director1.5yrs₹180.00kno data
Md. Nazmuddin
Government Nominee Director1yrsno datano data
Arvind Arora
Independent Director0.6yrsno datano data
Balmuri Vanitha
Independent Woman Director0.08yrsno datano data

1.2yrs

Average Tenure

Experienced Board: 500048's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BEML Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BEML Limited
  • Ticker: 500048
  • Exchange: BSE
  • Founded: 1964
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: ₹32.855b
  • Shares outstanding: 41.64m
  • Website: https://www.bemlindia.in

Location

  • BEML Limited
  • BEML Soudha
  • No. 23/1, 4th Main Road
  • Bengaluru
  • Karnataka
  • 560027
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500048BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2001
BEMLNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2001

Biography

BEML Limited provides products and services to the mining and construction, rail and metro, and defense and aerospace sectors in India. The company offers mining machinery for opencast and underground mines; dozers, excavators, backhoe loaders, front end loaders, and motor graders; hydraulic pumps and cylinders, hydro-pneumatic suspensions, and control valves; transmission, axle, and bevel gear powerline systems; diesel engines and generator sets; backhoe dredgers and dredger spares; and dump trucks, pipe layers, tire handlers, and water sprinklers. It also provides passenger coaches, electrical multiple units, inspection cars, track laying equipment, rail buses, spoil disposal units, treasury vans, mil rail coaches, wagons, utility track vehicle, and metro cars. In addition, the company offers armored recovery and repair vehicles, engineering mine ploughs, and surface mine clearance systems; BMP transmission and final drives, BMP refurbishing products, assembly hydrogas suspension units, and transmission products; wagons and milrail coaches, and ejectors and air cleaners; and aircraft towing tractors, ground handling and ground support equipment, crash fire tenders, aircraft weapon loaders, jigs and fixtures, and gears. Further, it provides mobility vehicles, all-terrain vehicles, command post vehicles, pinaka launchers, pontoon bridge systems, bridge systems, heavy recovery vehicles, and trailers, as well as snow cutters and aircraft weapon loading trolleys. The company also exports its products to approximately 68 countries worldwide. The company was formerly known as Bharat Earth Movers Limited. BEML Limited was founded in 1964 and is based in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 12:44
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.