BEML Ltd. share price target

Engineering India's next mobility & defence cycle & Metro, Defence & Aerospace and Mining & Construction. The company has evolved from a conventional mining and rail equipment manufacturer into an indigenous mobility and defence platform, with products spanning Vande Bharat Sleeper, metro coaches, High Mobility Vehicles, Armoured Recovery Vehicles, mining...

Management guided for revenue growth of 20% YoY with 150bps improvement in EBITDA margin in FY26. We revised our FY26/27E EPS by -3.4%/-3.6%, factoring in deferred orders and execution delays. BEML reported a strong quarter, with revenue growing 9.2% YoY and EBITDA margin improving by 110 basis points, supported by better material cost management and increased defence contributions. The FY25 order book stood at Rs140bn, below the guided ~Rs180bn due to delays in...

BEML reported standalone sales of Rs621cr for 2QFY2016, up 37.7% yoy (ahead of our expectation of Rs599cr). At the EBITDA level, the company reported losses of Rs13cr, in-line with our expectation. The impact of losses at EBITDA level was seen at the PAT level too, as the company reported a net loss of Rs30cr, against our loss expectation of Rs12cr. Notably, the quantum of loss has narrowed down on a yoy basis. BEMLs order book as of 2QFY2016 stands at ~Rs6,376cr, which gives revenue visibility for over the next few quarters. Valuation: During the quarter, BEML impressed us by reporting strong execution, mainly seen across the Construction & Mining Equipments segment. Also, BEML has reported a Rs1,771cr of order inflows, across all the 3 business segments. Reported order inflows, emerging bid pipeline, indicate us that BEML should end FY2016E with strong order inflows of Rs2,900cr. A strong awarding environment should lead to improvement in the execution. Accordingly, we expect BEML to report a 19.4% top-line CAGR during FY2015-17E. At the back-drop of improved execution and better absorption of fixed costs, we expect BEML to report a strong 529.2% PAT CAGR during FY2015-17E. On the whole, we are optimistic that the...

We expect the revenue to grow at a CAGR of 22% during FY15-FY17E and EBITDAto increase at a CAGR of 128% during FY15-FY17E. Accordingly, we also expectRoCE to expand to 13% and 15% during FY16E and FY17E from 4% in FY15 onthe back of higher execution of orders in hand.

BEML, is a Miniratna PSU, having business interest in Construction and Mining (C&M;) Equipment, Defence and Railways. Under C&M; equipment, it manufactures a wide range of heavy earthmoving...