View Full Version : BEML Ltd (NSE:BEML) (BSE:500048)

08-24-2015, 06:36 AM
BEML Limited is an India-based company engaged in manufacture of rail coaches and spare parts and mining equipment. Its segment includes Mining & Construction, Rail & Metro and Defense. The Trading Division deals in non-Company products. The International Division exports products manufactured by all the three verticals. Under Mining and Construction business, the Company manufactures and supplies Mining & Construction equipment such as Bull Dozers, Excavators, Dumpers, Shovels, Loaders and Motor Graders to various user segments and under Rail & Metro Business, it manufactures and supplies Rail Coaches, Metro Cars, Steel and Aluminium Wagons to the rail sector. It manufactures and supplies Defense Ground Support Equipment such as Tatra based High Mobility Trucks, Recovery Vehicles, Bridge Systems, Vehicles for Missile Projects, Tank Transportation Trailers, Milrail Wagons, Mine Ploughs, Crash Fire Tenders, Snow Cutters, Aircraft Towing tractors, Aircraft Weapon Loading Trolley.

Official Website: www.bemlindia.com

08-24-2015, 06:37 AM
For 1QFY2016, BEML reported standalone sales of Rs590cr, up 17.7% yoy, but slightly lower than our expectation of Rs595cr. We were expecting the turnaround trend at the EBITDA level, as seen in the previous 2 quarters, to continue in 1QFY2016 also. As against our expectation of 3%, the company reported an EBITDA margin of negative 9.7%. The losses at the EBITDA level trickled down to the PAT level, with the company reporting a net loss of Rs75cr for the quarter, as against our expectation of a net profit of Rs2cr. Notably, the quantum of loss has narrowed down on a yoy basis. BEMLís order book as of 1QFY2016 stands at ~Rs6,338cr, which gives revenue visibility for over the next few quarters. Valuation: BEML reported strong order wins from the Rail & Metro segment, the biggest positive during the quarter. The domestic MCE segment won orders worth Rs429cr only in 1QFY2016, indicating that awarding momentum across the MCE segment is yet to catch up; nevertheless, we expect the same to catch up, going forward. Despite miss on 1QFY2016 numbers, we are optimistic that the company would report strong earnings going forward. Our view stems on the back of BEMLs strong market positioning across business segments and improving award activity environment across segments. We continue to maintain our NEUTRAL rating on the stock.

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