Views on BEML 2QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on BEML 2QFY2016 Results:

BEML reports PAT level losses

"BEML reported standalone sales of INR 617cr, up 38.0% YoY (ahead of our expectation of INR 599cr). We were expecting EBITDA level losses at INR 13.1cr., and the company has reported EBITDA level losses of INR 13.4cr. Noteworthy, the company has reported lower EBITDA losses from the year ago levels of INR 31.1cr. Impact of EBITDA level losses was seen at the PAT level too, as the company reported net loss of INR 30.2cr, against our loss expectation of INR 12cr. This PAT level loss has narrowed down from previous year's INR 55.1cr. Despite 2QFY2016 losses, considering the company's strong market positioning across business segments and improving award activity environment, we are optimistic that BEML should report order wins going forward. Increase in the order book, should translate to better execution and again lead to turn-around in profits. We continue to maintain our NEUTRAL rating on the stock."

Shares of BEML LTD. was last trading in BSE at Rs.1108.65 as compared to the previous close of Rs. 1096.9. The total number of shares traded during the day was 59093 in over 6004 trades.

The stock hit an intraday high of Rs. 1118.3 and intraday low of 1074. The net turnover during the day was Rs. 64847752.

Source : Equity Bulls

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