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BEML Ltd. Stock Analysis

Small Cap
Evaluated by 2414 users | BSE: 500048 | NSE: BEML |
Engineering - Industrial Equipments
BEML established on May 1964 was formerly Bharat Earth Movers Limited. The company is a Public Sector Undertaking for manufacture of rail coaches and spare parts and mining equipment at its Bangalore Complex. BEML has emerged in the forefront of heavy engineering industry with a track record...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
BEML Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.67%4.86%1.11%2.98%2.21%3.94%4.39%6.22%4.3%3.59%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,6522,7262,8092,9122,8092,9812,4993,2463,4813,029
Y-o-Y Gr. Rt.-2.8%3%3.7%-3.5%6.1%-16.2%29.9%7.3%-13%
Adjusted EPS (Rs.) 35.4716.92-18.51.542.5216.2118.8530.1515.814.44
Y-o-Y Gr. Rt.--52.3%-209.3%NA63.6%543.3%16.3%60%-47.6%-8.6%
Book Value per Share (Rs.) 513.61521.55499.44499.4498.66511.21523.82528.31525.19541.97
Adjusted Net Profit 14870.5-776.410.567.578.512665.860.2
Net Op. Cash Flow (Rs. Cr.) -158242-13839454880208128257104
Debt to Cash Flow from Ops -5.153.96-9.112.431.177.092.093.481.573.25
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
BEML Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1.5%1.5%6.6%-13%
Adjusted EPS -9.5%41.8%-8.5%-8.6%
Book Value per Share 0.61.71.13.2
Share Price 2.9% -12.8% -28.9% -33.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 7.073.27-3.620.310.513.213.645.7332.71
Operating Profit Margin (%) 3.25.88-0.893.592.855.146.17.946.212.08
Net Profit Margin (%) 5.572.58-2.740.220.372.273.143.871.891.99
Debt to Equity 0.380.440.610.460.310.270.20.20.180.15
Working Capital Days 462488517487466401480432426507
Cash Conversion Cycle 329326325317295254334309279323
Entity Percentage Holding
Promoters 54.03%
Institutions 21.22%
Non-Institutions 24.76%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of BEML Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that BEML Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of BEML Ltd.'s performance infers:

BEML Ltd. earnings have grown by 41.8%, whereas share price has depreciated -12.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of BEML Ltd. share prices over the last 10 years. Here is what we found out:

BEML Ltd. share price has depreciated -5.9% annually over the past ten years.

BEML established on May 1964 was formerly Bharat Earth Movers Limited. The company is a Public Sector Undertaking for manufacture of rail coaches and spare parts and mining equipment at its Bangalore Complex. BEML has emerged in the forefront of heavy engineering industry with a track record of growth and revenues for over four decades.

The company is a multi-technology company offering high-quality products for diverse sectors of economy such as coal, mining, steel, limestone, power,

BEML established on May 1964 was formerly Bharat Earth Movers Limited. The company is a Public Sector Undertaking for manufacture of rail coaches and spare parts and mining equipment at its Bangalore Complex. BEML has emerged in the forefront of heavy engineering industry with a track record of growth and revenues for over four decades.

The company is a multi-technology company offering high-quality products for diverse sectors of economy such as coal, mining, steel, limestone, power, irrigation, construction, road building, aviation, defence, metro and railways. In keeping with the global technology trends, the company is setting up R&D Centre of Excellence for Research in Metro Rail System in Bangalore.

The main manufacturing facilities are located at Kolar Gold Fields, Mysore and Bangalore. These incorporate sophisticated facilities like CNC machines, hi-tech welding equipment and flexible manufacturing systems to turn out cutting-edge technology products. All three manufacturing facilities are certified for ISO 9001-2000.

It also operates Vignyan Industries, a subsidiary located at Tarikere, which is around 300 km from Bangalore and is engaged in manufacturing of steel castings.

As part of company’s globalization strategy, the company has expanded its global reach by opening local company at Indonesia and Brazil recently in addition to Malaysia and China offices. BEML has a nationwide marketing network for sales and service of construction equipment spread across 22 states, the National Capital Region and two Union Territories. Apart from the domestic market penetration, BEML’s machines reach over 52 countries worldwide covering Asia, Africa, Europe, Latin America and the Middle East. With the plans to increase global presence, BEML has set up overseas office and entering strategic alliances. Shoring up its revenues in the international business is an immediate priority to the company. It has established its international offices in China and warehouse at Malaysia. BEML has already established marketing base in Brazil, which will be followed by an assembly plant.

BEML's nationwide network of sales offices enables buyers with ready access to its wide range of products. Also, the full-fledged service centres and parts depots offer total equipment care, maintenance contracts and rehabilitation services.

BEML operates on three major business verticals for associated equipment manufacturing namely mining & construction, defence and rail & metro.

In addition to the above, the company also operates three strategic business units (SBUs) namely Technology Division for providing end-to-end engineering solutions, Trading Division for dealing in non-company products and International Business Division for export activities.

In order to offer quality products, the company has partnered with various companies namely Tatra Sipox, Pearson Engineering, Bumar, DMD GROUP, WFEL, General Dynamics Land Systems, TDA Armements S.A.S., Rotem Company, MTU Detroit Diesel India, Bucyrus International Inc, Terex Corp., Xiamen Loader Company, Heinzmann GmbH, ARAI, Ingersoll Rand, Crossmobil GmbH and many more.

Products

  • Mining & Construction - BEML manufactures products like crawler dozers, wheel dozers, excavators, dump trucks, loaders, backhoe loaders, pipe layers, walking dragline, sprinkler, rope shovel and graders.
  • Rail & Metro - Under this, the company manufactures metro cars, passenger coaches, EMUs, rail bus and overhead equipment inspection cars.
  • Defence - BEML manufactures Tatra vehicles and other defence products.
  • Engines - BEML manufactures diesel engines and diesel generator sets.
  • Hydraulic Aggregates - The company produces hydraulic pump, hydraulic cylinder, hydro-pneumatic suspension and control valve.
  • Powerline Aggregates - It manufactures transmission, axle, bevel gear, ejector & air cleaner assembly and final drive

Recognition

  • BEML received as many as 70 Prizes and 6 special Mementoes in the Garden Competitions held during the Republic Day Horticultural Show, January 2014.
  • In 2013 BEML bags 'Outstanding Company' Award
  •               -BEML Conferred with Raksha Mantri’s Award
  •                -Export Excellence Award for the year 2012-13 for BEML
  • In 2012 BEML Supplies Nation’s First Stainless Steel EMUs to Indian Railways
  • BEML is conferred with Mini-Ratna Category-1 Status and under the administrative control of Ministry of Defence.
  • The company is ranked as ‘The Largest and Most Profitable Construction Equipment Company’ by Construction World - NICMAR, 2007.
  • For its innovative management practices the company has been awarded the ‘Golden Peacock Innovation Management Award’.
  • BEML has also been rated as ‘The Fourth Largest Wealth Creator in the Country’ by the Dalal Street Magazine.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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