BEML - BUY

BEML-Growth potential in Railway and Metro Rail sector; Opportunity in defense sector; Growing demand in construction and Mining equipment sector ; Future visibility

Valuation

The future outlook of the company is promising with drivers like infrastructure development activities, industrial growth and favorable defense policy regulations will drive growth of BEML. The company is currently trading at TTM PE of 11.9x, 10 years historical trend shows that the company's TTM PE is trading at median of 17-18x viz-a-viz average growth of the company is 10%. Hence company is trading at around 50% discount on TTM PE basis. We expect the fair value of the company to be Rs. 950

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

Nothing in this article is, or should be construed as, investment advice.