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Inside Out | Deep dive into financials of BEML and all about GMDC

In this special show ‘Inside Out’, focus is on BEML stock with in-depth analysis, deep dive into its financials and all about the key risks and triggers going forward. Also Gujarat Mineral Development Corporation Limited (GMDC) is in the ‘Swotlight’.

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By Nigel D'Souza   | Sonal Bhutra  Jun 13, 2022 8:21:51 PM IST (Published)

Listen to the Article(6 Minutes)
In this special show ‘Inside Out’, the focus is on the Bharat Earth Movers Limited (BEML), a government company and also has been a big candidate for privatisation. The stock, after a good run has seen some profit-taking, the stock is down 40 percent from 52-week high.

The company works in three segments, mining, and construction which is around 47 percent of revenues, defence which is around 16 percent of total revenues and rail and metro at 37 percent.
The company has not seen very impressive growth rates in last 5 years. Looking at the revenues first, 7.6 percent CAGR in last 5 years, PAT in last 5 years have been flat and margins in FY22 were at 7 percent but they have been volatile, last 2 years because of COVID, but 7-8 percent has been the normalized band for the company.
In the ‘Swotlight’ segment, CNBC-TV18’s Sonal Bhutra talks about Gujarat Mineral Development Corporation Limited (GMDC). It operates in two segments mining and power. Mining is bulk of its revenues and lignite mining is its key contributor. On its power side it operates both thermal and renewable power plants which comprises of wind and a small solar power.
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