Nov 16: Bharat Earth Movers Ltd (BEML) has been moving on the bourse just like the machines it makes - on a swift roller coaster at times and going jerky at others. In the last two weeks, the scrip has been on a downhill - losing more than 25 per cent from Rs 103 to Rs 75.

The scrip, which started rising from its low of Rs 65 last year made three peaks before taking a steep downturn to Rs 75, thus completing the inverted U shaped trajectory. With a 52-week high at Rs 175 on May 23, 1997, this share has moved through three higher bottoms so far. It has shown tendency to gain fast and lose fast - about 25-30 per cent just over a week or two while trading in a narrow band at other times.

For instance, the share price rose from Rs 125 on April 22, 1997 to Rs 173 on April 30, 1997 i.e 38 per cent just over a week. Then it remained steady around Rs 170 for the next two months. Thereafter, it lost 25 per cent to Rs 130 on July 15,1997 within two weeks but again gained 25 per cent to Rs 165 on August 4, 1997 i.e over 20 days. Since then, BEML has been losing steam with a minor recovery to Rs 118 on October 8, 1997.

BEML suffered a setback with a lower growth in sales during 1996-97. Despite this, the company's efforts to get included into Navaratnas as also talks of various strategic alliances to stay competitive perked investors' sentiment and the scrip remained firm till early August, 1997. The going has been, however, tough for BEML in the first half and the share went into a free fall, propelled by the bear phase of the market recently.

After BEML ended its tie-up with Komatsu of Japan, the company is forging links with Volvo AB of Sweden for upgrading earth-moving equipments. Volvo in turn outsources bulldozers and dumpers from BEML. With this, BEML can reach out to West Asian and European market with a joint brand name.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.