BEML Ltd shares saw a sharp upward move in Wednesday’s trade after the PSU secured a contract worth Rs 866.87 crore. The stock surged 7.79 per cent to hit a day high of Rs 4,009.25. It was last seen trading 5.30 per cent up at Rs 3,916.60. At this price, the scrip has gained 38.01 per cent on a year-to-date (YTD) basis. Despite the mentioned rise, it has slipped 28.65 per cent from its record high value of Rs 5,489.15, a level seen on July 5 this year.
The state-owned firm said it bagged a contract for the design, manufacturing, and commissioning of two high-speed trainsets, each comprising eight cars by Integral Coach Factory (ICF), Chennai.
“The price of each car is Rs 27.86 crore and the total contract value is Rs 866.87 crore which includes design cost, one-time development cost, non-recurring charges, onetime cost towards Jigs, fixtures, tooling and testing facilities, which will be utilised for all future High-Speed projects in India. This project marks a significant milestone in India’s high-speed rail journey and will see the first indigenously designed and manufactured trainsets with a test speed of 280 kmph,” BEML stated.
The rail PSU mentioned that trainsets will be built at its Bengaluru rail coach complex and are scheduled for delivery by the end of 2026. “This contract further strengthens BEML’s position as a leader in rolling stock manufacturing and reaffirms its commitment to India’s vision of a faster, more efficient rail network,” it added.
Analysts at Prabhudas Lilladher (PL) have given an ‘Accumulate’ rating for BEML. “The stock is trading at a PE of 39.4x/29.0x/22.2x on FY25/26/27E earnings. We have an ‘Accumulate’ rating with a target price of Rs 4,484,” they stated.
Today’s upward move is a trend reversal, Mitesh Panchal, a Sebi-registered analyst, told Business Today TV. “One can hold on to the stock for an expected target price of Rs 4,168. Keep stop loss placed at Rs 3,691,” Panchal added.
BEML is a multi-technology firm under the Ministry of Defence. It operates in core sectors such as defence, rail, power, mining and construction. As of June 2024, the government held a 54.03 per cent stake in the company.
