The shares of the PSU company, specializing in the manufacturing and supply of high-quality products and services across three key business verticals: Defence & Aerospace, Mining & Construction, and Rail & Metro, are in focus upon the management approval of the stock split of 1:2.
With a market capitalization of Rs. 18,224.47 Crores on Monday, the shares of BEML Limited rose by 0.8 percent after making a high of Rs. 4439.65 compared to its previous closing price of Rs. 4401.95.
BEML Limited, engaged in the manufacturing and supply of high-quality products and services across three key business verticals: Defence & Aerospace, Mining & Construction, and Rail & Metro, has approved a stock split of its equity shares.
The company plans to sub-divide each existing fully paid equity share of face value Rs. 10 into two fully paid equity shares of face value Rs. 5 each, subject to shareholder approval. This means that for every 1 share held, shareholders will receive 2 shares, each with half the original face value.
The authorized share capital of the company remains unchanged at Rs. 100 crore but will now be divided into 20 crore shares of Rs. 5 each, instead of 10 crore shares of Rs. 10 each. The issued, subscribed, and paid-up share capital will also reflect the increased number of shares, while the aggregate paid-up capital remains the same.
The rationale for the split is to comply with DIPAM guidelines on capital restructuring, encourage participation from small investors, and enhance share liquidity in the stock market. The record date for the split will be announced after obtaining shareholder approval, and the process is expected to be completed within 2-3 months of securing the necessary approvals.
Financials & Others
The company’s revenue rose by 9.1 percent from Rs. 1,518.25 crore to Rs. 1,656.36 crore in Q4FY24-25. Meanwhile, the Net profit increased from Rs. 256.8 crore to Rs. 287.55 crore during the same period.
BEML Limited has a very low debt-to-equity ratio of 0.08, showing it is almost debt-free. Additionally, BEML has achieved an average 3-year net profit growth of 29.89%, reflecting good profitability.
The company operates in three main business verticals: Mining & Construction, which contributes 54% of sales; Defence & Aerospace, contributing 27% of sales; and Rail & Metro, contributing 19% of sales.
BEML Ltd. (Bharat Earth Movers Limited) is a public sector undertaking in India established in 1964. It is headquartered in Bangalore, India, and is engaged in the design, development, and manufacturing of a wide range of heavy equipment and machinery for sectors like defense, mining, construction, and railways.
It manufactures products like rail coaches, military vehicles, mining equipment, and construction machinery, serving both domestic and international markets. The company plays a crucial role in India’s infrastructure development and defense modernization.
Written by Sridhar J
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