BEML shares jump as analysts give a thumbs-up to PSU's robust order book

Bharat Earth Movers Ltd (BEML) shares rose on Monday after the state-run company won an order worth $19.71 million (Rs 161.6 crore at $1 = Rs 82) from Russia's KAMSS, a mining and transport equipment company. BEML shares gained by as much as Rs 68, or 3.2 per cent, to Rs 2,102.1 apiece on BSE within the first few minutes of trade, coming within Rs 39 of a 52-week high scaled last week. BEML Land Assets share rose by Rs 3.1, or 1.7 per cent, to Rs 181.2 apiece at the strongest level of the day. 

The order from KAMSS involves the export of BEML Dozer BD355, to be executed in different phases starting from August 2023, BEML said in a regulatory filing post-market hours on Friday. The deal marks an addition to the Indian company's robust order book thanks to a series of wins in the past few months. 

According to Zee Business research, the company has bagged significant orders across its three main segments—defence and aerospace, mining and construction, and rail and metro, with the deals totaling about Rs 4,100 crore in the past two-and-a-half months. 

Currently, the company's order book stands at around Rs 13,250 crore, which is 3.4 times its revenue for the entire financial year ended March 2023, according to the research. 

The BEML management expects its order book to grow further, to Rs 16,000-17,000 crore by the end of the current financial year (2023-24). 

Last week, the company won an order to the tune of Rs 101 crore from the defence ministry for the supply of command post vehicles. 

Here's a summary of some of the other orders bagged by the company in the recent past: 

• August 7, 2023: A Rs 3,177-crore rolling stock order from Bengaluru Metro Rail 
• June 28, 2023: A Rs 385-crore high mobility vehicle order from Bharat Dynamics 
• June 23, 2023: A high mobility vehicle deal worth Rs 423 crore from the defence ministry
• February 10, 2023: An order worth Rs 378 crore from HVF, Avadi

Buy, sell or hold? Here's what analysts suggest you do with BEML shares

Zee Business Analyst Arman Nahar recommends buying BEML shares from a long-term perspective, citing the company's sustained order inflow. 

He has a price target of Rs 2,500 for the PSU stock with a one-year view. Nahar's target implies an upside of 18.9 per cent BEML shares from Friday's closing price. Check out his other recommendations today

Last week, Zee Business Analyst Varun Dubey gave a fundamental 'buy' recommendation on BEML with a price target of Rs 2,170 and a stop loss at Rs 2,045.

Analysts at ICICI Direct find BEML attractive within the PSU space following a shallow retracement in the stock near life-highs that makes it a fresh buying opp. "The PSU sector has been showing resilience by sustaining above rising short-term moving average in the vicinity of all-time high, highlighting inherent strength," they wrote in a research report dated August 17.

BEML is forming a higher base after clocking a decade-long consolidation breakout, highlighting structural improvement that augurs well for the next leg of upmove, according to the analysts. 

ICICI Direct has a 'buy' call on BEML with a target price of Rs 2,240 and a stop loss at Rs 1,785 from a three-month perspective. The brokerage suggests a buying range in the stock at Rs 1,900-1,950 levels. 

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