Shares of BEML Limited saw a rise in Wednesday’s trading. News came that the company has received a new order worth Rs 866.87 crore. After this news, the stock rose 7.79 percent to the day’s high of Rs 4,009.25. The stock has gained 38.01 percent on year-to-date (YTD) basis.
The company said it has been awarded the contract by Integral Coach Factory (ICF), Chennai, for the design, manufacturing and commissioning of two high-speed trainsets, each of which will have eight coaches.
Indigenously designed and manufactured trainsets
Each car is priced at Rs 27.86 crore and the total contract value is Rs 866.87 crore, which includes design cost, one-time development cost. “This project is an important milestone in India’s high-speed rail travel and will see the first indigenously designed and manufactured trainsets with a test speed of 280 kmph,” BEML said.
The trainsets will be manufactured at its Bengaluru Rail Coach Complex
The rail PSU said the trainsets will be manufactured at its Bengaluru Rail Coach Complex and delivery is planned by the end of 2026.
Analysts at Prabhudas Lilladher (PL) have ‘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 ‘Accumulate’ rating with a target price of Rs 4,484,” he said.
SEBI registered analyst Mitesh Panchal told Business Today TV that today’s rise is a trend reversal. “Hold the stock for expected target price of Rs 4,168. Keep stop loss at Rs 3,691,” Panchal said.
BEML is a firm under the Ministry of Defence. It operates in key sectors like defence, railways, power, mining and construction. As of June 2024, the government held 54.03 percent stake in the company.