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BEML is back in the limelight. After posting a strong set of Q4 numbers, BEML share price surged nearly 12 per cent today (May 26) to hit an intraday high of Rs 4,144. That's a decent bounce, but it's also raised eyebrows. Because while the earnings are solid, the stock isn't exactly cheap.
What's moving the BEML share price?
Two key drivers:
-
Strong Q4 results
: Net profit for Q4 FY25 came in at Rs 288 crore—up 12 per cent YoY. Revenue grew 9 per cent to Rs 1,652.5 crore. The company's bottom line has been climbing steadily, and this quarter helped maintain that momentum.
- Tailwinds from government capex : With India doubling down on infrastructure and defence, BEML is well-positioned to ride this wave. Defence deals, metro expansions, and mining projects are likely to keep the order book healthy.
The numbers that matter
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Revenue | Rs 1,652.5 crore | Rs 1,514.2 crore | +9.1 per cent |
| Net profit | Rs 288 crore | Rs 257.1 crore | +12.0 per cent |
| EBITDA margin | 11.2 per cent | 10.4 per cent | +80 bps |
| EPS | Rs 74.8 | Rs 66.8 | +12.0 per cent |
What BEML does
BEML (Bharat Earth Movers) is a PSU that makes things that keep India moving—literally. From defence vehicles and metro coaches to mining and construction equipment, it plays a vital role in some of the country's biggest infrastructure and defence projects. It operates across three segments: Defence & Aerospace, Mining & Construction, and Rail & Metro.
Other key stats:
| Stat | Value |
|---|---|
| Current share price | Rs 4,132 |
| Market cap | Rs 15,514 crore |
| P/E | 53x |
| Dividend yield | 0.5 per cent |
| 52-week high | Rs 5,489 |
| 52-week low | Rs 2,346 |
Value Research ratings
| Parameter | Score (out of 10) |
|---|---|
| Quality | 1 |
| Growth | 7 |
| Valuation | 2 |
| Momentum | 5 |
A low quality score is a red flag. Despite the strong growth, governance, consistency or return metrics might be a concern. And a high valuation with a 53x P/E? That's expensive for a PSU.
Final word
BEML's Q4 numbers are solid and its growth story fits well with India's defence and infrastructure push. But the stock isn't cheap. A high P/E and low quality score suggest much of the optimism may already be baked in. Keep an eye on execution, fresh orders, and whether earnings can catch up to expectations.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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