BEML-TF by icestar


									                                                                                            Techno Funda
                                                              Horizon -1-60 Days                     28 October 2011

                        BEML                            CMP 525                    SL 495                      TGT 575

 A.K. Prabhakar                                  Company Description

 Shweta Prabhu                                          BEML (formerly Bharat Earth Movers) is a public sector                                 undertaking manufacturing BEML Limited operates as a
                                                        construction equipment company in India and internationally.
 C.A. Vivek Gujrati                                     The company offers a range of mining machinery for opencast                                 and underground mines; and produces machines, such as
                                                        electric rope shovels, hydraulic excavators, bulldozers, wheel
Key m atrix                                             loaders, wheel dozers, dump trucks, motor graders, pipe layers,
Price (Rs.)                                       525   tire handlers, water sprinklers, and backhoe loaders, as well as
M arket Cap (Rs.Crs.)                           2137    mammoth walking draglines for the opencast mines.
52 High / Low (Rs.)                        1170/413
M cap/Sales                                      1.09   BEML’s products are exported to more than 56 countries. As
PE (x)                                         14.68    part of the company’s globalisation strategy, it has expanded
TTM EPS                                        33.83    global reach by opening a local company in Indonesia and
Book Value (Rs.)                              514.48    Brazil recently in addition to offices in Malaysia and China.
BSE                                          500048
NSE                                            BEM L    BEML Ltd has lately announced its entry into dredging starting
Financials Consolidated                                 with a technology tie-up with a Netherlands company, Vosta
(Rs Crores)             FY1003       FY1103 % chg       LMG. The new stream of business would generate for BEML an
G ross Sales            2974.66      2802.62  -5.78     additional Rs 220 crore in revenue in the next two years.
PBIDT                    404.42       278.67 -31.09
Interest                  49.28        59.34 20.41      As of date, BEML's combined order book position stands at Rs
Depreciation              32.74        34.41   5.10     4712 crore, which is 1.79 times its consolidated net sales of Rs
Net Profit               224.49        147.8 -34.16
                                                        2802.62 crore for the year ended March 2011, giving strong
EPS (Rs)                  53.91        35.49   -
                                                        revenue visibility.
CEPS (Rs.)                61.77        43.76   -
F.V. (Rs)                    10           10   -
                                                        Rising allocation of defence and railways in government
Equity Capital            41.64        41.64   -
PE (x)
                                                        expenditure plans will buoy BEML's order book. Realising this
                           9.74        14.79   -
                                                        trend, the company has expanded capacities, launched new
Latest Q uarterly results
(Rs Crores)               Q 1FY10    Q 1FY11 % chg
                                                        products and entered in technological tie -ups. Launch of metro
G ross Sales
                                                        train services in new Tier-I and Tier-II cities have the potential to
                           577.29     588.05    1.86
                                                        pace business growth. BEML has expanded its capacity to
                             41.86     46.59   11.30
Net Profit                    14.4     15.87   10.21
                                                        garner more orders.
Equity                       41.64     41.64    -
EPS                           3.46      3.81    -
                                                        The company has cash and cash equivalents of ~Rs. 280crs
Shareholding Pattern                                    with low debt/equity ratio of 0.41x for the FY11.
(% )                       Jun-11    Sep-11     chg
Foreign                      13.33     9.32    -4.01    BEML came up with decent set of results for Q2FY12. PAT
Institutions                 23.48    26.24     2.76    reported was Rs. 15.3crs v/s 14.7crs y-o-y. Top line was Rs
Corp. Holding                 2.48     2.86     0.38    792crs v/s Rs. 509crs y-o-y basis. At present valuations it is
Promoters                    54.03    54.03     0.00    quoting at a 5 years lowest PE multiple.
Public&Others                 6.68     7.55     0.87

For Private Circulation Only                                                                    Anand Rathi Retail Research
                                                                                                                                    Techno Funda
                                                                                          Horizon -1-60 Days                                        28 October 2011

Technical Outlook

Technical Comments

Stock has made positive Island reversal where 8-12% target in 1-60days can be possible in the stock. Stock
Gapped-down(506-501) on 18/10/2011 and today gapped-up(497-498) and if the stock holds Rs.495 on downside
then 575 on higher side can be possible.

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For Private Circulation Only                                                                                                                 Anand Rathi Retail Research

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