Prabhudas Lilladher Suggests Buy On Top Dividend Paying Multibagger Railway Stock, TP At Rs 3,550

BEML Ltd, engaged in the business of railways and defence, is recommended to buy for a target price of Rs 3,550 apiece ahead by brokerage Prabhudas Lilladher.

On Monday, BEML shares ended at Rs 3,209.65 apiece, marginally up on BSE. Its market cap is around Rs 13,366.43 crore.

The dividend-paying smallcap stock rallied by 13% year-to-date. While in a year, BEML is a multi-bagger with gains of nearly 164%. 5-year gains by BEML are to the tune of 323%.

Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher said, “The stock after the steep correction has bottomed out near the 2680 zone and with a short period of consolidation has witnessed improvement in the bias with a positive candle formation maintaining above the 50EMA level of 3070 zone to improve the bias.”

Currently with the RSI also gradually regaining strength has much upside potential to carry on the positive move for targets of 3550 and 3770 levels, respectively with support maintained near the 2900 zone, the analyst added.

This Miniratna railway stock has declared an interim dividend of Rs 5 per share having a face value of Rs 10 each for the financial year 2023-24. In percentage terms, the dividend payout is 50% of paid-up share capital. The company turned ex-dividend on February 16 which was also its record date for payment of said interim dividend to the eligible equity shareholders.