This defence stock specializes in manufacturing battle tank engines, metro trains, mining machinery, and military vehicles, covering defence, rail, and heavy equipment sectors, jumped 6 percent after signing two important Memorandums of Understanding (MoUs) with Siemens and Dragflow S.R.L.
Stock Price Movement:
With a market capitalization of Rs. 10,931.68 crores, the share of BEML Limited has reached an intraday high of Rs. 2,642.10 per equity share, rising nearly around 6.16 percent from its previous day’s close price of Rs. 2,488.70. Since then, the stock has retreated and is currently trading at Rs. 2,625 per equity share.
What Happened:
BEML Limited has signed two important Memorandums of Understanding (MoUs). The first MoU is with Siemens Limited, India, to explore joint opportunities in the semi-high-speed and suburban passenger train segments, along with metro and commuter rail markets.
The second MoU is with Dragflow S.R.L., Italy, to strengthen indigenous dredging solutions. These collaborations aim to enhance BEML’s capabilities in the transportation and dredging sectors, driving innovation and growth in these key areas.
Order Book:
BEML Limited’s order book was Rs. 11,423 crore in September 2024, a 10.4 percent decrease compared to Rs. 12,743 crore in September 2023. For the full fiscal year 2024 (FY24), the order book totals Rs. 11,872 crore.
Product Portfolio:
The company specializes in advanced defence and industrial manufacturing, offering a wide range of products they develop themselves. In defence, they make engines for battle tanks, bulletproof vehicles, mine equipment, and solutions for mobility.
In the rail and heavy machinery sector, they produce Vande Bharat sleeper trains, metro cars, bulldozers, dump trucks, and motor graders, showcasing their skills in transportation, construction, and mining equipment.
Recent quarter results:
BEML Limited’s revenue fell from Rs. 1,047 crore in Q3 FY24 to Rs. 876 crore in Q3 FY25, marking a decrease of 19.52 percent. Their net profit also dropped by 50 percent, from Rs. 48 crore in Q3 FY24 to Rs. 24 crore in Q3 FY25.
Written By – Nikhil Naik
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