BEML shares zoomed 10% today; will this upward move continue?

Shares of BEML Ltd on Tuesday jumped 9.64 per cent to settle at Rs 3,369.30. At this price, the stock has slipped 18.60 per cent from its one-year high value of Rs 4,139.40, a level seen earlier this month on February 2. Despite the mentioned drop, it has rallied 198.41 per cent from its 52-week low of Rs 1,129.10, hit on March 16 last year.

The heavy equipment maker reported a consolidated profit before tax of Rs 66.85 crore in the quarter ended December 31 (Q3 FY24), up nearly 1 per cent from Rs 66.30 crore in the year-ago period. The state-run firm’s revenue climbed a modest 1 per cent, (year-on-year), to Rs 1,047 crore.

“The revenue from operations have improved due to rail and metro business vertical execution of MEMU orders to Indian Railways RGM to LORAM and Mumbai Metro contracts,” BEML stated.

Technical analysts largely suggested that the stock looked ‘bullish’ on daily charts after a steep correction. Support on the counter could be seen around Rs 3,050-3,040 levels.

“The stock has bottomed out near the Rs 2,680 zone after witnessing a sharp correction. It has now produced a big bullish candle formation on daily charts to indicate a trend reversal. With immense upside potential visible from current levels, we suggest to buy and accumulate the stock for upside targets of Rs 3,720-3,880 levels in the coming days. Keep stop loss at Rs 3,040,” said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

“Support will be at Rs 3,050 and resistance at Rs 3,330. A decisive close above Rs 3,330 level may trigger a further upside till Rs 3,550. Expected trading range will be between Rs 2,900 and Rs 3,650 for a month,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.