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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500048 | NSE: BEML

BEML Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:14 pm

Market Cap 15,403 Cr.
Current Price 3,699
High / Low5,489/2,374
Stock P/E53.9
Book Value 649
Dividend Yield0.55 %
ROCE15.2 %
ROE11.0 %
Face Value 10.0
PEG Ratio1.63

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for BEML Ltd

Competitors of BEML Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Brady & Morris Engineering Company Ltd 355 Cr. 1,5782,511/49537.2 1250.00 %40.3 %43.3 % 10.0
BEML Ltd 15,403 Cr. 3,6995,489/2,37453.9 6490.55 %15.2 %11.0 % 10.0
Action Construction Equipment Ltd 14,790 Cr. 1,2421,695/78040.4 1160.16 %42.3 %30.6 % 2.00
Industry Average10,182.67 Cr2,173.0043.83296.670.24%32.60%28.30%7.33

All Competitor Stocks of BEML Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales4511,0001,1741,6846698051,0371,3885779171,0471,514634
Expenses5339741,0591,4547257639481,1016278589911,143684
Operating Profit-8227116230-564289287-515956370-50
OPM %-18%3%10%14%-8%5%9%21%-9%6%5%24%-8%
Other Income1913-01115191103451
Interest141320101111121210118119
Depreciation17171716161616161616161717
Profit before tax-941179205-821666278-754267348-75
Tax %0%0%0%35%0%0%0%43%0%-23%28%26%-7%
Net Profit-941179133-821666158-755248257-70
EPS in Rs-22.602.5618.8732.07-19.803.9115.9437.91-18.0312.4511.5961.73-16.94

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,8012,9042,8022,9752,4943,2393,4743,0253,5974,3373,8994,0544,111
Expenses2,8292,7732,7282,8252,3412,9863,2372,9423,4194,0123,5303,6093,676
Operating Profit-281317414915325323884178325369445435
OPM %-1%5%3%5%6%8%7%3%5%8%9%11%11%
Other Income11660604263252349206224249
Interest1621277656554860413965494238
Depreciation51545357636571727166646465
Profit before tax-12510579981641301987200278382381
Tax %-34%39%-9%18%14%21%52%-229%21%36%43%26%
Net Profit-83666485130636469129158282286
EPS in Rs-20.021.471.4315.4820.3831.1715.1915.3516.5630.9637.9667.7468.83
Dividend Payout %-13%68%70%26%39%26%46%39%36%32%26%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)107.23%0.00%966.67%32.81%52.94%-51.54%1.59%7.81%86.96%22.48%78.48%
Change in YoY Net Profit Growth (%)0.00%-107.23%966.67%-933.85%20.13%-104.48%53.13%6.23%79.14%-64.48%56.00%

BEML Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:3%
3 Years:4%
TTM:3%
Compounded Profit Growth
10 Years:43%
5 Years:35%
3 Years:60%
TTM:42%
Stock Price CAGR
10 Years:20%
5 Years:37%
3 Years:43%
1 Year:53%
Return on Equity
10 Years:5%
5 Years:6%
3 Years:8%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:36 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital42424242424242424242424242
Reserves2,0382,0392,0352,0882,1412,1592,1462,2112,1732,3152,3802,6262,658
Borrowings1,26395864556943844640434175283238171649
Other Liabilities1,8791,7901,9211,7222,1372,0972,4952,5702,8772,6242,3042,8522,634
Total Liabilities5,2224,8284,6434,4204,7574,7445,0865,1635,8435,8135,1075,5915,982
Fixed Assets546513482557583595631621601621505528537
CWIP142173192104796825151414233745
Investments0000000000006
Other Assets4,5344,1423,9693,7594,0944,0814,4304,5275,2285,1784,5795,0265,394
Total Assets5,2224,8284,6434,4204,7574,7445,0865,1635,8435,8135,1075,5915,982

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-13639454880209130257106-30151560458
Cash from Investing Activity +-132-28-36-33-59-62-62-51-49-25-20-68
Cash from Financing Activity +152-427-384-105-160-101-1293-177-10-331-130
Net Cash Flow-116-61128-57-11-336557-52716208260

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-29.00-827.00-571.00-420.00-285.00-193.00-166.00-257.00-574.00-507.00-12.00374.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days112123129148209186170182191157116130
Inventory Days550478460375615395331482373328369418
Days Payable110841278915211414215213385116132
Cash Conversion Cycle552517462434673467358512432400369416
Working Capital Days352309266265333260242341356312271266
ROCE %1%4%3%5%6%8%7%2%5%9%10%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters54.03%54.03%54.03%54.03%54.03%54.03%54.03%54.03%54.03%54.03%54.03%54.03%
FIIs4.31%6.15%5.91%5.13%5.50%5.44%6.08%6.79%9.12%9.91%6.76%5.66%
DIIs21.38%19.08%18.75%20.39%19.87%19.72%19.51%19.03%18.97%17.79%20.14%18.51%
Public20.28%20.75%21.32%20.44%20.59%20.79%20.38%20.16%17.87%18.28%19.08%21.79%
No. of Shareholders91,32288,26792,71493,05093,52394,76795,0391,01,57699,5861,21,0011,52,6981,91,604

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Balanced Advantage Fund - Regular Plan1,071,5330.52489.18231,9002024-11-20362.07%
Kotak Small Cap Fund - Regular Plan729,7891.9333.16231,9002024-11-20214.7%
Kotak Equity Opportunities Fund - Regular Plan300,0000.55136.96231,9002024-11-2029.37%
HSBC Midcap Fund231,9000.89105.87231,9002024-11-200%
ICICI Prudential MidCap Fund138,2290.9463.1231,9002024-11-20-40.39%
Mahindra Manulife Small Cap Fund100,0000.9145.65231,9002024-11-20-56.88%
ICICI Prudential Infrastructure Fund88,8350.6740.56231,9002024-11-20-61.69%
HDFC Equity Savings Fund - Regular Plan40,0000.3718.26231,9002024-11-20-82.75%
Sundaram ELSS Tax Saver Fund29,0000.9513.24231,9002024-11-20-87.49%
ICICI Prudential Child Care - Gift Fund27,1020.9112.37231,9002024-11-20-88.31%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)67.6637.9130.8816.5015.29
Diluted EPS (Rs.)67.6637.9130.8816.5015.29
Cash EPS (Rs.)82.7353.1446.6933.5332.57
Book Value[Excl.RevalReserv]/Share (Rs.)638.59579.59564.09530.08539.31
Book Value[Incl.RevalReserv]/Share (Rs.)638.59579.59564.09530.08539.31
Revenue From Operations / Share (Rs.)970.58933.381038.37851.44724.27
PBDIT / Share (Rs.)115.9892.8975.5347.3831.71
PBIT / Share (Rs.)100.7077.5559.6330.2914.39
PBT / Share (Rs.)91.3666.4847.8120.854.63
Net Profit / Share (Rs.)67.4537.8030.7816.4515.24
NP After MI And SOA / Share (Rs.)67.4637.8030.8316.4915.28
PBDIT Margin (%)11.949.957.275.564.37
PBIT Margin (%)10.378.305.743.551.98
PBT Margin (%)9.417.124.602.440.64
Net Profit Margin (%)6.944.042.961.932.10
NP After MI And SOA Margin (%)6.954.052.961.932.11
Return on Networth / Equity (%)10.566.525.463.112.83
Return on Capital Employeed (%)11.8210.046.763.471.65
Return On Assets (%)5.173.152.251.201.25
Long Term Debt / Equity (X)0.000.000.000.040.08
Total Debt / Equity (X)0.020.150.340.280.10
Asset Turnover Ratio (%)0.770.720.760.650.60
Current Ratio (X)2.492.382.382.322.88
Quick Ratio (X)1.291.231.361.381.49
Inventory Turnover Ratio (X)0.991.021.121.021.02
Dividend Payout Ratio (NP) (%)14.7726.3720.0450.1632.61
Dividend Payout Ratio (CP) (%)12.0418.7513.2224.6315.28
Earning Retention Ratio (%)85.2373.6379.9649.8467.39
Cash Earning Retention Ratio (%)87.9681.2586.7875.3784.72
Interest Coverage Ratio (X)12.428.396.405.023.25
Interest Coverage Ratio (Post Tax) (X)8.224.413.612.742.56
Enterprise Value (Cr.)13349.445580.608378.895880.202103.86
EV / Net Operating Revenue (X)3.291.431.931.650.69
EV / EBITDA (X)27.5514.3826.5629.7115.88
MarketCap / Net Operating Revenue (X)3.281.351.751.470.62
Retention Ratios (%)85.2273.6279.9549.8367.38
Price / BV (X)4.982.173.222.370.83
Price / Net Operating Revenue (X)3.281.351.751.470.62
EarningsYield0.020.030.010.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of BEML Ltd as of November 21, 2024 is: 3,869.08

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, BEML Ltd is Undervalued by 4.60% compared to the current share price 3,699.00

Intrinsic Value of BEML Ltd as of November 21, 2024 is: 5,144.60

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, BEML Ltd is Undervalued by 39.08% compared to the current share price 3,699.00

Last 5 Year EPS CAGR: 32.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (2,231.46 cr) compared to borrowings (596.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.85 cr) and profit (131.38 cr) over the years.
  1. The stock has a low average ROCE of 6.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 297.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 466.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in BEML Ltd:
    1. Net Profit Margin: 6.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.82% (Industry Average ROCE: 32.6%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.56% (Industry Average ROE: 28.3%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 8.22
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.29
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 53.9 (Industry average Stock P/E: 43.83)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

BEML Ltd. is a Public Limited Listed company incorporated on 11/05/1964 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L35202KA1964GOI001530 and registration number is 001530. Currently Company is involved in the business activities of Manufacture of railway or tramway rolling stock, not self-propelled (passenger coaches, goods vans tank wagons, self-discharging vans and wagons, workshop vans, crane vans, tenders etc.. Company’s Total Operating Revenue is Rs. 4337.49 Cr. and Equity Capital is Rs. 41.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto - Construction VehiclesBEML SOUDHA, No. 23/1, 4th Main Road, Bengaluru Karnataka 560027cs@beml.co.in
https://www.bemlindia.in
Management
NamePosition Held
Mr. Shantanu RoyChairman & Managing Director
Mr. Ajit Kumar SrivastavDirector
Mr. Anil JerathDirector - Finance
Mr. Arun DagaIndependent Director
Mr. Vikas KakatkarIndependent Director
Mr. Siva MakutamIndependent Director
Mr. Bipin Kumar GuptaIndependent Director
Mr. Nishtha UpadhyayGovernment Nominee Director

FAQ

What is the latest intrinsic value of BEML Ltd?

The latest intrinsic value of BEML Ltd as on 21 November 2024 is ₹3869.08, which is 4.60% higher than the current market price of ₹3,699.00.

What is the Market Cap of BEML Ltd?

The Market Cap of BEML Ltd is 15,403 Cr..

What is the current Stock Price of BEML Ltd as on 21 November 2024?

The current stock price of BEML Ltd as on 21 November 2024 is ₹3,699.

What is the High / Low of BEML Ltd stocks in FY 2024?

In FY 2024, the High / Low of BEML Ltd stocks is 5,489/2,374.

What is the Stock P/E of BEML Ltd?

The Stock P/E of BEML Ltd is 53.9.

What is the Book Value of BEML Ltd?

The Book Value of BEML Ltd is 649.

What is the Dividend Yield of BEML Ltd?

The Dividend Yield of BEML Ltd is 0.55 %.

What is the ROCE of BEML Ltd?

The ROCE of BEML Ltd is 15.2 %.

What is the ROE of BEML Ltd?

The ROE of BEML Ltd is 11.0 %.

What is the Face Value of BEML Ltd?

The Face Value of BEML Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in BEML Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE