Shares of BEML climbed 6.47% to register a new historic high of ₹2,134.50 apiece during intraday trade on Tuesday after the company secured a Letter of Acceptance (LOI) from Bangalore Metro Rail Corporation (BMRC) for the supply of rolling stock contract 5RS-DM valued at approximately ₹3,177 crore.
Over the past four months, the shares have been on a consistent upward trajectory, surging from ₹1,270 to the current trading price of ₹2,031, resulting in a stellar 60% return. Since its all-time low of ₹106 apiece in August 2013, the stock has delivered an impressive return of 1816% to date.
BEML is a public-sector enterprise under the administrative control of the Department of Defence Production, Ministry of Defence. The company operates under three major business sectors: Mining and Construction, Defence and Rail and Metro.
BEML was the first company in India to manufacture all steel integral passenger rail coches and rolling stock. In its defence sector, BEML has established a world-class testing facility at its KGF complex to test defence equipment and vehicles, as per the company's website.
Within the Mining and Construction business, BEML offers a comprehensive and diverse range of mining machinery for both opencast and underground mines.
In June, BEML secured significant orders for the supply of High-Mobility Vehicles. These included orders worth ₹385 crore from BDL and BEL, as well as an additional order valued at ₹423 crore from Ministry of Defence.
In Q4FY23, the company displayed an 18.8% surge in its consolidated net profit. It concluded FY23 with a total net profit of ₹158 crore, marking a 22.5% rise over FY22's net profit of ₹129 crore.
The consolidated revenue from operations during Q4FY23 fell by 17.5% YoY to ₹1,338 crore. The company finished FY23 with a 10% YoY drop in revenues to ₹3,899 crore. BEML said that its order book position as of April 1, 2023, stood at Rs. 8,570 crore.
02 analysts polled by MintGenie on average have a 'strong buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
