Railway Stock: Everytime IRFC and RVNL are in news due to Continuous orders. These companies have a very strong order book due to which shares have performed exceptionally well in the past few years. When a company gets a new contract, share prices skyrocket for a few trading days. This time another Railway Company has Secured a huge order worth Rs 3,658 crore. The shares of this Railway Company skyrocketed as soon as the news came. We are talking about BEML Ltd.
Railway Stock Surged Amid Huge Order
Actually BEML Ltd secured a huge order worth Rs 3,658 crore recently. The shares have delivered 5.53% returns in the past 5 days. After the news of this huge contract was published, the shares skyrocketed and touched a high of Rs 4,338. Currently BEML shares are trading at Rs 4,230.50 after the market closure on Friday, November 30.
BEML Order Details
BEML has obtained a significant contract from Chennai Metro Rail Limited worth ₹3,658 crore. This contract covers design, manufacturing, testing, commissioning, and maintenance services for a period of 15 years in addition to the production of metro rolling stock and depot gear. It can be referred to as a sort of “complete package,” reflecting BEML’s technical and service quality.
Also Read: Railtel Share Price Target 2024 to 2050
BEML Quarterly Results
The Q2 FY25 performance of BEML was not so impressive. Revenue of the company decreased by 6.22%, from ₹917 crore to ₹860 crore. Additionally, net profit decreased by 1.92%, from ₹52 crore to ₹51 crore. ROCE and ROE for the company are 15.2% and 11%, respectively. Even though these numbers appear a little slow, the company’s foundation is solid, and the Chennai Metro project has the potential to benefit them greatly in the long run.
BEML Share Performance
The shares of BEML Ltd were trading at a peak level of Rs 5,488 in July 2024. Now it has witnessed a huge correction from its peak price level. Talking about the share performance, BEML has given 6.10% return in the last one month while it has given negative returns of 9.48% in the last 6 months. However, BEML has delivered 48.74% returns this year so far and 71.42% in the last one year.
BEML Order Book
After getting this huge order worth Rs 3,658 crore, BEML’s order book now reached Rs 15,100 crore. Let us tell you that the company’s order book has improved 38% in FY24 to Rs 11,900 crore. BEML earlier secured huge orders for Bangalore Metro Project and Vande Bharat Sleeper Class which pushed the company’s order book. These orders from the Railway segment have definitely helped to improve its Revenue as well as margin profile.
BEML Share Price Target
Brokerage firm Antique has given a “Buy” Rating with a revised share price target of Rs 5,185 representing a 22.57% upside from the current price level Rs 4,230. According to the brokerage firm, the company has a great potential considering a large order book and Continuous orders. As the Railway and Metro segment orders are increasing. The company’s profit and revenue is increasing as well from the Railway and Metro segment including Defense. In the coming days, revenue and margin of the company will improve in future.
About the Company
BEML Limited, a distinguished Public Sector Undertaking (PSU) founded in 1964, was earlier known as Bharat Earth Movers Limited. The organization, which has its headquarters in Bengaluru, is run by the Indian government’s Ministry of Defence. It produces heavy-duty vehicles for defense and metro coaches, and it is the second-largest maker of earthmoving equipment in Asia.
Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information provided in Trademint.in is for educational purposes only and we do not recommend buying or selling any stocks. This information provided is only for reference purpose so we are not responsible in case investors incur any loss based on the information. We provide timely updates about the stock market and financial products to help you make better investment choices. Always conduct your own research before making any investment decision or consult a financial advisor.
