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BEML LTD (Bharat Earth Movers Ltd) FPO Message Board (Page 6)

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46. mils |   Link |  Bookmark | July 3, 2007 3:44:11 PM
Eventhough the issue got oversubscribed by 21.96 times. At cut off it is just 39.6%. hence the final issue price will be lower than cut off i.e. might be around 1055.
45. mils |   Link |  Bookmark | July 3, 2007 3:37:44 PM
till 3 PM the total subscription is 21.96 times. But at cut off it's just 39.6% & remaining at lower price
44. SONU |   Link |  Bookmark | July 3, 2007 3:28:27 PM
pls gv the recent retail subscription details for BEML and HDIL
43. yash |   Link |  Bookmark | July 3, 2007 11:42:52 AM
apply only 4 long term..no listin gains
42. madhu |   Link |  Bookmark | July 2, 2007 2:36:22 PM
Good..........Subscribe
41. Pramod |   Link |  Bookmark | July 1, 2007 10:55:26 AM
This is not a good deal so better to avoid
40. arun |   Link |  Bookmark | June 29, 2007 12:45:58 PM
hi Vikram could you please share with us name of website from where you got "Equity Master Report". so it will give idea for other IPO also .thanks in advance .we need it for everonn and allied digital ipos.
39. Vikram |   Link |  Bookmark | June 28, 2007 10:30:38 PM
Bharat Earth Movers Ltd (BEML) - Niche Brokerage Review - Subscribe

BEML is expected to grow at a CAGR of 18% in revenues in the coming years and it expects a PAT growth of 15% going forward. This is on the back of declining cost of raw material as a percentage of sales and savings in employee cost due to VRS. There will be substantial increase in margins due to BEML’s expansion in Latin American Market and also due to huge demand coming from each of the segments company is operating in. BEML also enjoys 5 years tax exemption & expects to record topline of Rs 5000 crores by 2012.

For the full year, net profit rose 9.63% to Rs 204.9 crore in the year ended March 2007 as against Rs 186.9 crore during March 2006. Sales rose 17.69% to Rs 2423.9 crore in the year ended March 2007 as against Rs 2059.5 crore during March 2006. BEML's price band of Rs 1,020 - Rs 1,090 per share for its FPO is at 7% discount (at the upper band) to the current market price of Rs 1,170.

The current market price of Rs 1177 discounts its FY07 diluted EPS of Rs 49 by a PE multiple of 24 and its FY08 EPS of Rs 57 by a PE multiple of 21. At the current valuations BEML looks fairly priced, however we recommend a Subscribe with a long-term perspective looking at the potential growth in infrastructure, mining & construction and defence sectors.
38. Vikram |   Link |  Bookmark | June 28, 2007 9:31:57 PM
Hi Raj,
I got this report from one of my friend who is paid member.
I am trying to find out more reports from them and will post them soon.
Vikky
37. raj |   Link |  Bookmark | June 28, 2007 9:14:53 PM
Hi Vikram (205.156.188.254),
could you please share with us name of website from where you got "Equity Master Report". so it will give idea for other IPO also .thanks in advance .
36. tanushri |   Link |  Bookmark | June 28, 2007 8:48:46 PM
Dont apply.
35. Sundaram.J.S. |   Link |  Bookmark | June 28, 2007 11:47:10 AM
Hi Vikram (205.156.188.254),
Do you have Equity Master Report for other issues as well.
If yes can you post that reports for other issues(Everonn System IPO, Allied Digital IPO etc)

Thanks,
Sundaram.J.S.
34. raghu |   Link |  Bookmark | June 28, 2007 11:28:13 AM
This is laggard company.
Avoid and skip this FPO.
You may have to wait forever for returns.
It is not able to move (having only a Mover in Name only) on its own.
33. vikram |   Link |  Bookmark | June 28, 2007 12:50:04 AM
Equity Master Report - Avoid

Reasons to apply
-----------------
1. Presence in strategic sectors: BEML has a diverse portfolio of products which caters to different core segments of the economy such as mining, steel, cement, power, irrigation, construction, road building, defence equipment, railways and Metro transit systems. It is not dependent on any single sector for its revenues. BEML's products are used in sectors like coal, steel, cement, railways and power, and this enables it to capitalise on the positive trends witnessed by these sectors, in view of focus of the government on developing infrastructure. Some of the projects in the pipeline are the Golden Quadrilateral, the National Highways Development Project, Pradhan Mantri Gram Sadak Yojana, North-South and East- West corridors, metro rail projects in major cities and river-linking projects. These projects are expected to generate significant demand for BEML's products in the future.


2. Leading Metro coach manufacturer: BEML has established itself as the leading metro coach manufacturer in the country and has successfully delivered 188 metro coaches to Delhi Metro Railway Corporation (DMRC) till date. It is well placed to play a big role by supplying coaches for the upcoming metro projects in the country in cities such as Mumbai, Chennai, Bangalore, Hyderabad, Ahmedabad and Kochi, as well as Phase II of the Delhi Metro. Metro transport will be introduced in all cities in India having a population of more than 3 m. In view of this, the estimated requirement of Metro coaches in the coming 5 years is expected to be very substantial. The company already has an order book of 2,000 coaches. To cater to this huge demand, BEML's new Metro Fabrication Hangar will be coming up at the Bangalore unit.


3. Diversifying into new business: In FY07, BEML forayed into two new businesses with a view to diversify revenue streams, improve profitability and leverage on upcoming business opportunities. It has opened new technology division and trading division. The technology division offers end-to-end solutions and services across the whole product development cycle including designing, modelling, analysis, simulation, prototyping, testing and documentation. The divisions started operations in May 2006 and as on 31st December 2006 it generated revenues of Rs 44.9 m, all of which have been realised from inter divisional services.


Reasons not to apply
--------------------
1. Revenue concentration and negative operating margins: The Ministry of Defence is BEML's largest customer for defence products. Similarly, a substantial proportion of its sale of railway products is currently made and is expected to be made to a small number of customers such as Indian Railways, Delhi Metro Railway Corporation and other metro rail transit agencies. The number and value of defence and railway products that it supplies is likely to vary from year to year depending on the government policies and budgets for defence and railway or metro transport. More importantly, the operating profit margin for railway products sub-segment of business has been negative during the past 5 years mainly due to limited discretion in the fixation of selling price and unavailability of raw material supplies at competitive prices, which is adversely affecting BEML's operations. In FY06, railway products contributed to about 5% of total revenues out of which about 72% was derived from metro coaches, which is a segment that has yet to breakeven. The overall business performance of the company (as seen in the adjacent chart) has also been very volatile in the past.

On the positive front, BEML is likely to enjoy some savings in employee costs due to the ongoing VRS scheme.


2. Opening up of defence sectors and problems associated with metros: The company generates almost 30% of its revenues from the defence sector. The defence sector has been opened up for private sector players and BEML will face increased competition from other manufacturers both in India and overseas. To make matter worse, the liberalization of imports will also invoke more competition in earthmoving equipment and railway products. Secondly, BEML's joint venture with CCC based in Brazil is likely to take off on a slower trajectory as multinationals like Caterp illar and Komatsu are already actively present in the Brazilian market. Thirdly, the company is largely dependent on the success of metro projects across the nation. Given the uncertainty in the implementation of the development projects, project delays would lead to cost overrun causing a setback to the financials of the company.


Comparative Valuations & Comments
------------------------------
At the upper end of the price band of Rs 1,020 to 1,090, the stock of BEML has been offered at 31 times its annualised FY07 earnings. This makes the issue aggressively priced as compared to its peers in the domestic and international markets. While the valuations and financial history of the company does not support this, we also do not envisage the company to be able to match up the same in the foreseeable future as well. Consistency in performance and lack of independency in operations (due to restricted framework of government regulations) are our main concerns with regard to the company.


Another point worth noting here is that the Rs 5.3 bn that the company plans to raise through this issue could have been partly funded by raising debt (debt equity ratio is currently 0.1 times and would go upto 0.5 times in the absence of the equity issue) and partly through cash (Rs 2.7 bn in December 2006) in its books. Considering that debt is a cheaper source of funding as compared to equity, the equity dilution would pare the company's return ratios going forward. We would therefore recommend investors to '''''''''''''Avoid''''''''''''' this issue given better alternatives available in this sector.



32. sl narasimhan |   Link |  Bookmark | June 27, 2007 6:55:52 PM
the IPO is good
31. krupal |   Link |  Bookmark | June 27, 2007 4:40:58 PM
it's a good fpo that's for sure . it has subscribed 64 % on the first day . so no problem of subscription will take out .i t will sub more than 20 times . the price of the share was around 1170 on the 27 june
30. pappu |   Link |  Bookmark | June 25, 2007 7:10:34 PM
Corporate Results
BEML Q4 net up at Rs 93.50 crore
MUMBAI: Bharat Earth Movers Ltd (BEML) has posted a net profit of Rs 93.51 crore for the quarter ended March 2007 as compared to Rs 86.12 crore reported during the same quarter in 2006. Total income for the quarter has increased to Rs 958.48 crore from R s 836.58 crore in the year-ago period.

For the year ended March 2007, the company recorded a net profit of Rs 204.93 on a total income of Rs 2,479.28 crore against Rs 186.93 crore and Rs 2,126.92 crore respectively.
29. Chinmay |   Link |  Bookmark | June 25, 2007 4:10:02 PM
Hi Everybody,

The price has already been fixed.
Please refer below as well as top of this page.

Bharat Earth Movers Limited FPO Information
»» Public Issue Open : June 27, 2007 to July 03, 2007
»» Public Issue Type : 100% Book Building Issue (Followup Public Offer FPO )
»» Public Issue Size: 49,00,000 Equity Shares (of Rs. 10/- Each Share)
»» Public Issue Price: Rs. 1000/- to Rs. 1050/- Per Equity Share
»» Maximum Subscription Amount for Retail Investor: Rs 100,000/-
»» Listing : BSE, NSE
»» Lead Manager: ICICI Securities Limited
»» Registrar : Karvy Computershare Private Ltd (Ph: 040 2342 0818 Email: einward.ris@karvy.com)
»» Bharat Earth Movers Limited FPO listing date, BEML BSE Code, BEML NSE Symbol : [ ]
28. ckshah |   Link |  Bookmark | June 25, 2007 3:30:29 PM
prise band of fpo is 1020/- to 1090/-

minimum qty 5 shares
27. Sandeep |   Link |  Bookmark | June 25, 2007 12:52:15 PM
prise band of fpo is 1020/- to 1090/-