From Rs 400 to Rs 4000: BEML rallies over 900%, Do you own it?

BEML Limited manufactures a wide range of heavy earthmoving equipment for the mining and construction industry, vehicles for defence forces, and coaches for the metro and Indian Railways. There is a significant surge in the company’s stock price today.

Share Performance:

At the start of the day’s trading session, the stock opened at Rs 3867.65 per share, indicating an approximate 1.4% increase compared to the previous day’s closing figure of Rs 3815.50 per share on the BSE.

Furthermore, the company’s stock crosses a significant milestone of Rs 4000 for the first time ever. Back in the year 2020, when the markets experienced a significant downfall, the stock was available at around Rs 400 per share. From this low point, the company never looked back and showcased robust strength. Today, it has reached around Rs 4100, representing an impressive multibagger return of 925%.

The company’s current market capitalisation stands at Rs 16,427 crore, and the stock has generated an impressive return of around 183% during the past one year and around 415% return in the past three years.

Stock Chart (Monthly):

Financial Performance:

In the second quarter of FY24, the company reported revenues of Rs 917 crore, reflecting a growth of 14% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 805 crore. The company posted an operating profit of Rs 61 crore for the quarter, in contrast to an operating profit of Rs 42 crore in the corresponding quarter of the previous year. Furthermore, the company reported a net profit of Rs 52 crore, compared to a net profit of Rs 16 crore in the same period last year. However, the company’s net profit has surged by around 225% YoY this quarter.

The company’s ROCE and ROE are 10.5% and 6.30% while the shares are trading at 84.6 times in the market.

In terms of ownership, the Promoter holds 54.03%. The FIIs and DIIs hold 9.12% and 18.97% respectively, while public investors hold 17.87% as per the most recent update.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.