Buy BEML, target price Rs 4155-4397: HDFC Securities
HDFC Securities has a buy call on BEML Ltd. with a target price of Rs 4155 (base value) and Rs 4397 (fair value). The current market price of BEML is Rs 3982.35 Time period given by analyst is 6-9 months when BEML Ltd. price can reach the defined target. BEML, incorporated in 1964, is a Mid Cap company with a market cap of Rs 16,524.54 crore, operating in the Engineering sector.
Financials
For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 874.70 crore, up 37.83% from the last quarter Total Income of Rs 634.61 crore and down -5.34% from last year same quarter's Total Income of Rs 924.01 crore. The company has reported net profit after tax of Rs 51.03 crore in latest quarter.
Investment Rationale
The government?s proactive efforts to strengthen indigenous design, development, and manufacturing of defence equipment are poised to generate substantial opportunities for the domestic sector. The push for Atmanirbhar Bharat and the Positive Indigenisation List are accelerating its growth journey towards self-reliance. BEML has an advantage over its competitors due to its dominant market position, proven track record and association with the armed forces, established infrastructure and manufacturing facilities, along with strong R&D capabilities. Government ownership leads to a sizeable inflow of orders on a nomination basis. BEML?s established track record, large manufacturing capacities, strong R&D base, robust order book with healthy order prospects and strong financial profile
