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BEML (BOM:500048) Beneish M-Score : -2.34 (As of May. 15, 2024)


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What is BEML Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for BEML's Beneish M-Score or its related term are showing as below:

BOM:500048' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25   Med: -2.54   Max: -1.88
Current: -2.34

During the past 13 years, the highest Beneish M-Score of BEML was -1.88. The lowest was -3.25. And the median was -2.54.


BEML Beneish M-Score Historical Data

The historical data trend for BEML's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BEML Beneish M-Score Chart

BEML Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.54 -1.88 -2.44 -3.25 -2.34

BEML Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.25 - - - -2.34

Competitive Comparison of BEML's Beneish M-Score

For the Conglomerates subindustry, BEML's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BEML's Beneish M-Score Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, BEML's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where BEML's Beneish M-Score falls into.



BEML Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of BEML for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0688+0.528 * 0.9354+0.404 * 1.1019+0.892 * 1.0398+0.115 * 1.0013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.032312-0.327 * 0.9713
=-2.34

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹20,952 Mil.
Revenue was ₹40,543 Mil.
Gross Profit was ₹19,593 Mil.
Total Current Assets was ₹46,468 Mil.
Total Assets was ₹54,454 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,302 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹638 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹18,868 Mil.
Long-Term Debt & Capital Lease Obligation was ₹95 Mil.
Net Income was ₹2,818 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹4,577 Mil.
Total Receivables was ₹18,853 Mil.
Revenue was ₹38,990 Mil.
Gross Profit was ₹17,624 Mil.
Total Current Assets was ₹42,542 Mil.
Total Assets was ₹50,098 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,315 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹641 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,009 Mil.
Total Current Liabilities was ₹17,863 Mil.
Long-Term Debt & Capital Lease Obligation was ₹98 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(20952.3 / 40543.2) / (18852.861 / 38989.5)
=0.516789 / 0.483537
=1.0688

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(17624.2 / 38989.5) / (19592.7 / 40543.2)
=0.452024 / 0.483255
=0.9354

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (46467.7 + 5301.7) / 54453.5) / (1 - (42541.753 + 5314.97) / 50097.814)
=0.049292 / 0.044734
=1.1019

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=40543.2 / 38989.5
=1.0398

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(640.837 / (640.837 + 5314.97)) / (638.322 / (638.322 + 5301.7))
=0.107599 / 0.107461
=1.0013

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 40543.2) / (1009.344 / 38989.5)
=0 / 0.025888
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((94.9 + 18868.3) / 54453.5) / ((98.097 + 17862.913) / 50097.814)
=0.348246 / 0.358519
=0.9713

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2817.7 - 0 - 4577.191) / 54453.5
=-0.032312

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

BEML has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.


BEML (BOM:500048) Business Description

Traded in Other Exchanges
Address
No. 23/1, 4th Main Road, BEML Soudha, S.R. Nagar, Bengaluru, KA, IND, 560 027
BEML Ltd is an India-based company that primarily operates through three segments. The mining and construction segment offers a wide range of mining machinery for both opencast and underground mines. This segment also comprises the company's holdings in a joint venture that takes up contract mining. The rail and metro segment provides rail coaches, overhead electric inspection cars, postal vans, and other equipment to Indian railways. The Defense segment provides military equipment to the Indian Army and other defence forces.

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