BEML Ltd.
NSE: BEMLBEML Ltd.: A 30-second snapshot
BEML is a defence and infrastructure manufacturer currently priced at ₹1,833.40, up 15.2% over the past year but trading below its 200-DMA of ₹1,868.60 and 24.65% below the 52-week high. The company has reported a five-year revenue CAGR of 23.7% alongside a reported ₹40,000 crore order book, but profitability metrics remain thin — profit margin of 5.92%, ROE not crossing 15% in any tracked year, and a quality score of 40 out of 100. Leverage is a dominant structural feature, with a debt-to-equity ratio of 23.79.
P/E
59.8
Forward P/E
31.3
ROE
—
Debt / Equity
23.79
Profit Margin
+5.9%
Div. Yield
+0.7%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
42/100
News
8 headlines · 6 positive · 0 negative
BEML awarded contract for tank mine ploughs - Asian Military Review
Asian Military Review
BEML Ltd. Secures MoD Order Worth ₹590 Crore for Trawl Assemblies - India Technology News
India Technology News
BEML Limited Wins ₹590 Crore Defence Contract for Trawl Systems for Indian Army - Daily Pioneer
Daily Pioneer
BEML secures ₹590 crore defence order for supply of trawl assemblies - CNBC TV18
CNBC TV18
BEML Share: Can Its Strong ₹40,000 Cr Order Visibility Drive Steady Execution Over the Next 2 Years? - Trade Brains
Trade Brains
Recent context
- ·BEML secured a ₹590 crore Ministry of Defence order for trawl assemblies for the Indian Army in April 2026, adding to a string of defence contract announcements over the period.
- ·A tank mine plough contract was separately awarded, broadening BEML's defence segment beyond its traditional rail and metro equipment base.
- ·Trade Brains coverage in May 2026 highlighted ₹40,000 crore in order visibility and questioned whether execution cadence over the next two years can translate the pipeline into reported earnings.
Strengths
- +Five-year revenue CAGR of 23.7% reflects sustained top-line expansion, supported by a reported order book visibility of approximately ₹40,000 crore as cited in recent trade coverage.
- +Recent defence order wins include a ₹590 crore Ministry of Defence contract for trawl assemblies and a tank mine plough contract, diversifying the order mix across Indian Army programmes.
- +Forward PE of 31.32 is lower than the trailing PE of 59.84, implying analyst projections embed meaningful earnings growth over the near term.
- +Debt trend is described as falling, and FCF was positive in 3 of the tracked years, suggesting some improvement in capital discipline even if the consistency score of 35 remains below median.
Weaknesses
- −Debt-to-equity of 23.79 is substantially elevated for a capital-goods manufacturer, creating sensitivity to interest-rate changes and refinancing conditions that could pressure earnings.
- −ROE has not cleared 15% in any tracked year and is currently not reported, indicating the company has not generated equity-efficient returns despite significant revenue scale-up.
- −Profit margin of 5.92% and quality score of 40 place BEML 4th of 6 among its infrastructure peer cohort, behind BEL (quality 57), ABB (quality 47), and CGPOWER (quality 45).
- −FCF consistency score of 35 and positive FCF in only 3 tracked years signal irregular cash conversion, which limits confidence in debt reduction capacity or capex self-funding.
Open questions
- ?Given a debt-to-equity of 23.79 and a profit margin under 6%, how does BEML's interest-coverage ratio trend over the past three years, and what refinancing obligations fall due in the next 12-24 months?
- ?Does the ₹40,000 crore order book represent firm orders with milestones and payments already scheduled, or does it include letters of intent and conditional contracts that may not convert?
- ?Five-year revenue CAGR is 23.7% but ROE has never crossed 15% — what portion of incremental revenue is absorbed by working-capital requirements, debt service, or cost escalation before reaching equity holders?
- ?How does BEML's execution track record on large defence and metro contracts compare to its peers BEL and L&T in terms of delivery timelines and margin realisation?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BEML | BEML Ltd.You're viewing | 59.8 | — | 40 |
| Industry avg | across 5 peers | 69.5 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.0 | — | 57 |
| ABB | ABB India Ltd. | 87.1 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹1,833.40
SMA 50
₹1,670.90
SMA 200
₹1,868.60
RSI (14)
53.9 (neutral)
From 52w high
-24.6%
1Y return
+15.2%
3M return
+3.8%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 23.79 is substantially elevated for a capital-goods and defence manufacturer; this level of leverage implies significant interest-coverage sensitivity to any earnings shortfall and refinancing exposure if credit conditions tighten.
- highROE is not reported and the company has not cleared the 15% ROE threshold in any of the tracked years, indicating consistently low equity efficiency despite five years of 23.7% revenue CAGR.
- mediumProfit margin of 5.92% and quality score of 40 (ranked 4th of 6 among infrastructure peers) place BEML in the lower half of its cohort; comparables BEL (quality 57) and ABB (quality 47) score materially higher.
- mediumFCF was positive in only 3 of the tracked years with a consistency score of 35, reflecting irregular cash generation and raising questions about self-funded capital deployment capacity.
- mediumCurrent price of ₹1,833.40 is below the 200-DMA of ₹1,868.60 and sits 24.65% below the 52-week high, indicating the stock has not reclaimed its longer-term trend average.
- lowAnalyst rating is null with only 3 analysts tracked; the sparse coverage limits the reliability of consensus signals for this stock.
Cross-section contradictions
- Five-year revenue CAGR of 23.7% has not translated into return-on-equity clearing 15% in any tracked year, and profit margin remains at 5.92%, suggesting revenue growth is outpacing margin and equity-efficiency gains.
- News sentiment is predominantly positive (6 of 8 articles) driven by defence order wins totalling ₹590 crore, yet the stock is trading below its 200-DMA and is 24.65% off its 52-week high, indicating price action has not reflected the newsflow.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days