Synopsis:
BEML is in focus after securing new work orders worth Rs. 293.82 crores from the Ministry of Defence.
A small-cap PSU company that is engaged in the manufacturing of equipment for mining and construction, railway coaches, and defence vehicles is in the spotlight after receiving work orders worth Rs. 293.82 crore.
With the market capitalization of Rs. 17,320 crore, the shares of BEML Ltd are trading at Rs. 4,159, down by 3.18 percent from its previous day’s close price of Rs. 4,298.10 per equity share, and it has reached a high of Rs. 4,293 in the same trading day.
Work Order
BEML Limited, engaged in the manufacture of a wide range of heavy earthmoving equipment, received a work order from the Ministry of Defence for the supply of HMV 6X6. The value of the contract is approximately Rs. 293.82 crores.
Also Read: Smallcap stock in focus after company’s net profit increases by 149% QoQ
About the Company & Others
Established on May 11, 1964, BEML Limited is a diversified public sector undertaking under the Ministry of Defense. Its operations were divided into three main verticals: rail and metro sectors (19 percent of sales), defense and aerospace (27 percent of sales), and mining and construction (54 percent of sales).
It has supplied more than 9,350 high-mobility vehicles ,350 armored recovery vehicles, and 3,700 military wagons. It has delivered 29,100 engines, more than 33,830 mining and construction equipment units, 2,099 metro cars, and 18,000 rail coaches. Additionally, it has shipped more than 1,400 pieces of equipment to 72 nations. BEML plays a significant role in the aerospace sector by manufacturing and integrating platforms such as LVM3, Akash, QRSAM, and Su-30.
The company’s current orderbook stands at Rs. 14,610 crore, which has increased by 23 percent compared to Rs. 11,872 crores in FY23-24. A return on equity (ROE) of about 10.5 percent and a return on capital employed (ROCE) of about 15.6 percent demonstrate the company’s position. At the moment, the company’s P/E ratio is 59.2x, which is higher as compared to its industry P/E of 45.5x.
Its revenue from operations declined by 0.79 percent from Rs. 4,054 crore in FY24 to Rs. 4,022 crore in FY25, accompanied by profits of Rs. 293 crore in FY25 compared to 282 crore in FY24. The debt-to-equity ratio stands at 0.08.
Written by Akshay Sanghavi
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