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BEML Ltd

NSE: BEML BSE: 500048

1741

(0.26)%

Tue, 03 Feb 2026, 09:35 am

Analysis

dividend

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Pros

  • Dividends paid are covered by earnings (1.4x coverage).
  • BEML's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • BEML's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • BEML is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BEML is profitable, therefore cash runway is not a concern.
  • BEML is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (140.2%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 10.3x debt.
  • BEML's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (34.7% vs 18.1% today).
  • BEML's level of debt (18.1%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
  • High level of physical assets or inventory.

management

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Pros

  • Deepak's remuneration is lower than average for companies of similar size in India.
  • Deepak's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the BEML management team is about average.
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Cons

  • The average tenure for the BEML board of directors is less than 3 years, this suggests a new board.

misc

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Pros

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    Cons

    • BEML is not covered by any analysts.
    • BEML has significant price volatility in the past 3 months.

    past

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    Pros

    • BEML's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
    • BEML has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • BEML's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • BEML used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
    • BEML has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • BEML's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.

    value

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    Pros

    • BEML's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • BEML's share price is below the future cash flow value, and at a substantial discount (> 40%).
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    Cons

    • BEML is overvalued based on assets compared to the IN Machinery industry average.
    • BEML is overvalued based on earnings compared to the IN Machinery industry average.
    • BEML is overvalued based on earnings compared to the India market.
    • BEML underperformed the Machinery industry which returned -23.7% over the past year.
    • BEML underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:BEML is flat (-0.4%) underperforming the Machinery industry which returned 8.3% over the past month.
    • NSEI:BEML is flat (-0.4%) underperforming the market in India which returned 8% over the past month.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800