Check Before You Invest : BEML Ltd

Snapshot

Q.1 Which industry/sub-sector does BEML Ltd belong to?

BEML Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Construction Vehicles segment.

Q.2 Is BEML Ltd a good quality company?

BEML Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is BEML Ltd undervalued or overvalued?

BEML Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is BEML Ltd a good buy now?

BEML Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of BEML Ltd?

BEML Ltd revenue growth is -0.8% for FY-2025, which is below its 5-year CAGR of 5.84%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of BEML Ltd?

BEML Ltd Return on capital employed is 16.22% for FY-2025, which is above its 5-year historical median of 11.38%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of BEML Ltd?

BEML Ltd Return on Asset is 5.33%, which is above its 5-year historical median of 3.06%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of BEML Ltd?

BEML Ltd Return on equity is 10.7% for FY-2025, which is above its 5-year historical median of 6.75%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of BEML Ltd?

BEML Ltd Cash conversion cycle is 272 days, in line with its 5-year historical median of 271 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.73	0.75
ROE	10.7	6.75
ROCE	16.22	11.38
Cash Conversion Cycle	272 days	271 days

Q.6 Gross Profit margin of BEML Ltd?

BEML Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is above its 5-year median of 8.8%, indicating increasing margins.

Q.7 Operating Profit Margin of BEML Ltd?

BEML Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.8% for FY-2025, which is above its 5-year median of 9.67% indicating increasing margins.

Q.8 Net Profit Margin of BEML Ltd?

BEML Ltd Net Profit Margin is 7.31% for FY-2025, is above with its 5-year median of 4.07%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.9	8.8
Operating Profit Margin	12.8	9.67
Net Profit Margin	7.31	4.07

Q.9 Debt to Equity ratio of BEML Ltd?

BEML Ltd Debt-to-Equity ratio is 0.08, which is lower with the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of BEML Ltd?

BEML Ltd Debt to cash flow from operations is 1.27, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of BEML Ltd?

Promoters hold 54.03% of the BEML Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of BEML Ltd vs industry peers?

BEML Ltd revenue CAGR is 5.84%, compared to the industry median CAGR of 10.87%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-0.8	10.9
Gross Profit Growth	6.7	33.9
Operating Profit Growth	13.4	40.3
Net Profit Growth	3.9	50.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.73	0.75
ROE	10.7	11.98
ROCE	16.22	14.25
Cash Conversion Cycle (days)	271.86	110

Valuation & price assessment

Q.1 Stock return of BEML Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 15.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	15.7%	25.7%	39.7%	20.2%

Q.3 Valuation ratios of BEML Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	60.72	52.39	21.03
Price to Book	5.65	4.15	4.14
Price to Sales	3.7	2.55	3.38
EV to EBITDA	34.23	28.36	12.86

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