Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy BEML Limited with a target price of Rs 570 in 4-5 trading sessions.

The company is presently trading around Rs 516-520 level.

According to experts at Nirmal Bang, the stock may face some resistance around Rs 540 levels, but after that it can even have more upward movement.

The scrip has very strong support at Rs 490.

Shares of the company, on Tuesday (May 12), closed at Rs 517.30 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 1209.95 and a low of Rs 280 on BSE. Current EPS and P/E of the stock stood at 51.70 & 10.08 respectively.

According to India Infoline, "We continue to remain positive on the stock from technical perspective as the stock has managed to hold on to its short-term support trendline in ongoing market volatility. The daily momentum oscillators i. e. RSI and MACD are suggesting strength in the upmove."

"A move above Rs 540, could take the stock above Rs 570 in the near term. Keeping in mind the above-mentioned observations, we suggest traders to buy the stock in the range of Rs 532-540 with a stop loss placed at Rs 522 levels for an initial target of Rs 575," the report said.

BEML Ltd., a Mini-Ratna Category-I PSU under the Ministry of Defence, has set up its Assembly Unit "BEML Brasil Industrial Ltda" at Rio De Janeiro, Brazil on 15th April
2009.

BEML will assemble its products relating to Mining & Construction, Rail & Metro and Defence sectors at this division and supply it to its potential clients in and around Brazil.

BEML, on April 19, signed up a MoU with NFM Technologies (NFM), France, in order to make Tunnel Boring Machines (TBMs) in the Indian market.

This contract will make BEML the primary Indian company to produce Tunnel Boring Machines.

NFM Technologies is the second biggest maker of Tunnel Boring Machines in the World.