BEML shares surged 10% today; how strong is this breakout?

Shares of Shares of BEML Ltd (formerly Bharat Earth Movers Ltd) jumped 9.56 per cent in Friday's trade to hit a high of Rs 4,697. The stock was last seen up 8.80 per cent at Rs 4,664.50. At this price, the state-run defence player has gained 31.18 per cent in a month.

Elara Securities has reiterated its optimistic outlook on the company following a recent meeting with the company's management. The brokerage highlighted BEML's robust growth prospects and set an ambitious order book target of Rs 22,000-23,000 crore by the fiscal year 2026. It has assigned a target price of Rs 4,860 for BEML, based on a 37 times March FY27E P/E.

On the technical front, BEML may find support in the Rs 4,140–4,400 range, while a decisive breakout above Rs 4,800 could signal further upside potential.

Anand Rathi recommend accumulating the stock in the Rs 4,550-4,450 zone, as short-term dips may offer opportunity for the target of Rs 5,725.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "BEML has witnessed a strong move today and construes a buoyant technical structure on weekly charts. The counter has a strong support near the Rs 4,200-4,140 zone, while on the higher end, the next potential resistance is seen around Rs 4,800 in the near period.

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, noted that support on the counter will be at Rs 4,400 and resistance Rs 4,800. "A decisive move above Rs 4,800 level may trigger a further upside towards Rs 5,000. The expected trading range will be between Rs 4,400 and Rs 5,000 for the short term," Patel added.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 70.07. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-earnings (P/E) ratio of 73.81 against a price-to-book (P/B) value of 7.61. Earnings per share (EPS) stood at 63.22 with a return on equity (RoE) of 10.31. According to Trendlyne data, BEML has a one-year beta of 1.43, indicating high volatility.

BEML is a multi-technology firm under the Ministry of Defence. It operates in core sectors such as defence, rail, power, mining and construction. As of March 2025, the government held a 54.03 per cent stake in the PSU.