Is BEML Ltd overvalued or undervalued?

Aug 27 2025 08:03 AM IST
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As of August 26, 2025, BEML Ltd is considered overvalued with a valuation grade of expensive, reflected by a PE ratio of 53.73, an EV to EBITDA of 32.15, and a Price to Book Value of 5.56, all significantly higher than its peers, despite a historical return of 581.60% over five years and a recent decline of 6.19%.
As of 26 August 2025, the valuation grade for BEML Ltd has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 53.73, an EV to EBITDA of 32.15, and a Price to Book Value of 5.56, all of which suggest that the stock is trading at a premium compared to its earnings and book value.

When compared to peers, BEML Ltd's PE ratio is higher than that of Action Construction Equipment, which stands at 29.43, and significantly above Elecon Engineering's PE of 27.71. Despite a robust historical return of 581.60% over the past five years, recent performance shows a decline of 6.19% over the past week, while the Sensex has only dropped by 1.05%. This further reinforces the notion that BEML Ltd is overvalued in the current market context.
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