BEML shares zoomed 22% in 3 sessions; is some caution warranted now?

Shares of BEML Ltd (formerly Bharat Earth Movers Ltd) extended their gains for the third straight session on Tuesday. The stock rose 3.71 per cent to hit a day high of Rs 4,437.95. At this price, it has gained 22.28 per cent in three trading days.

The state-run firm recorded a consolidated net profit of Rs 288 crore for the fourth quarter of the financial year 2025 (Q4 FY25), registering a nearly 12 per cent rise from Rs 256.8 crore seen in the same period last year. During the quarter under review, its revenue from operations climbed more than 9 per cent to Rs 1,652.53 crore from Rs 1,513.65 crore for Q4 FY24.

One analyst noted that the recent sharp uptick in BEML warrants a cautious approach, while another recommended booking profits at current levels, citing overbought conditions on the technical charts.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "BEML has witnessed a decisive spurt in price and volumes. The rally has been vertical in nature and the counter nears its swing highs of Rs 4,500-4,520 levels, which demands a cautious stance at current levels. On the lower end, the support is placed near the Rs 4,100-4,000-subzone in the comparable period."

Sebi-registered independent research analyst AR Ramachandran underscored that BEML looked bullish but overbought on daily charts with next resistance at Rs 4,548. "Investors should be booking profits as a daily close below support of Rs 3,742 could lead to a downward target of Rs 2,935 in the near term," he added.

Ravi Singh, SVP - Retail Research at Religare Broking, suggested that Rs 4,600 will be the next target price for the stock along with a stop loss placed at Rs 4,000 level.

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), said, "Support will be at Rs 4,000 and a decisive move above Rs 4,250 level will trigger a further upside of Rs 4,500. The expected trading range will be between Rs 4,000 and Rs 4,500 for the short term."

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 80.71. 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 68.97 against a price-to-book (P/B) value of 7.11. 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 1.7, 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.