BEML

 UPDATE 26-08-18 TIME: 7:30 PM

BEML Ltd.

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.

Quarterly Financial Trend & Technicals Long Term Drivers-Quality & Valuation

Performance Today : Underperformed Sector by -1.19%

Consecutive Fall: Stock has been losing for the last 2 days and has fallen -1.97% in the period

Day’s Low: Stock touched an intraday low of Rs 805.60 (-2.26%)

Moving Averages: Stock has traded lower than 5 day, 20 day, 50 day, 100 day and 200 day moving average.

Falling Investor Participation: Delivery Vol of 1.05 lacs on 24 Aug has fallen by -8.44% against 5-day avg delivery vol

Industry Engg – Industrial Equipments

Market cap Rs 3,274 Cr (Small Cap) — P/E 60.37 / Industry P/E 93.79

Dividend Yield 1.02 % / Debt Equity 0.43 / Return on Equity 2.47 %

Price to Book 1.49

Net Sales Rs 454.68 cr Net Profit (Quarterly Results – Jun 2018) Rs -160.34 Cr

Standalone Quarterly Results

 
Total Operating income Jun 2018

454.68

Jun 2017

631.66

-28.02%
Net Sales 454.68 631.66 -28.02%
Other Operating Income 0.00 0.00
Total Expenditure (Excl Depreciation) 591.66 695.20 -14.89%
Raw Material Cost 265.23 347.75 -23.73%
Purchase of Finished goods 0.00 0.00
(Increase) / Decrease In Stocks 27.26 -7.40 468.38%
Employee Cost 196.92 199.71 -1.40%
Power Cost 0.00 0.00
Manufacturing Expenses 102.25 155.14 -34.09%
Selling and Distribution Expenses 0.00 0.00
Other Expenses 0.00 0.00
Operating Profit (PBDIT) excl Other Income -136.98 -63.54 -115.58%
Other Income 4.65 5.13 -9.36%
Operating Profit (PBDIT) -132.33 -58.41 -126.55%
Interest 11.02 11.27 -2.22%
Exceptional Items 0.00 0.00
Gross Profit (PBDT) -143.35 -69.68 -105.73%
Depreciation 16.99 15.45 9.97%
Profit Before Tax -160.34 -85.13 -88.35%
Tax 0.00 0.00
Provisions and contingencies 0.00 0.00
Profit After Tax -160.34 -85.13 -88.35%
Extraordinary Items 0.00 0.00
Prior Period Expenses 0.00 0.00
Other Adjustments 0.00 0.00
Net Profit -160.34 -85.13 -88.35%
Equity Capital 41.65 41.65
Face Value (IN RS) 10.00 10.00
Reserves 0.00 0.00
Earnings per share (EPS) -38.50 -20.44 -88.35%
Diluted Earnings per share -38.50 -20.44 -88.36%
Operating Profit Margin (Excl OI) -30.13% -10.06% -20.07%
Gross Profit Margin -31.53% -11.03% -20.50%
PAT Margin -35.26% -13.48% -21.79%
Public Share Holdings (%) 0.00% 0.00%
Pledged Promotor Holding (%) 0.00% 0.00%

 

Share Holding Pattern

Beml
Beml