Synopsis:
BEML, a key defence and infrastructure player, will consider an equity share split on July 21 to improve stock liquidity.
This major player in defence and infrastructure equipment manufacturing is set for significant corporate action. Its board will convene on July 21st, 2025, specifically to deliberate a proposal for an equity share split. This article details the upcoming meeting and the associated closure of the insider trading window pending results.
BEML Limited’s stock, with a market capitalisation of Rs. 18,722 crores, rose to Rs. 4,530, hitting a high of up to 2.28 percent from its previous closing price of Rs. 4,428.90. However, the stock over the past year has given a negative return of 10 percent.
Split announcement
BEML will hold a board meeting on 21st July 2025 to discuss splitting its equity shares. The trading window, which closed on 1st July, will stay closed until 48 hours after the company announces its financial results. The date for the results will be shared later.
Management Outlook
Management has set ambitious financial targets, aiming to increase EBITDA margins from the current 13.2% to around 14.5–14.7% in the near term, with a long-term goal of 20% over the next 4–5 years. Key growth areas include the rail & metro and defence & aerospace sectors.
Notably, defence now contributes 27% to the top line, marking a historic milestone. BEML is also making strides in metro technology, particularly with Unattended Train Operation (UTO) systems.
To support its growth vision, BML is expanding its order book, aiming to add over Rs. 14,000 crore in FY26 from its current order book of Rs. 14,610 crore, with defence expected to comprise 20% of the total. A capex of Rs. 600 crore is planned for FY26, including a major Rs. 230–240 crore investment in a rolling stock facility in Bangalore.
Q4 Financial Highlights
In Q4FY25, the company reported revenue of Rs. 1,653 crore, marking a growth of 9% YoY from Rs. 1,514 crore in Q4FY24 and a sharp 89% QoQ rise from Rs. 876 crore in Q3FY25. Despite a 3-year sales CAGR of -2%, the recent quarter reflects a strong recovery in topline performance.
Net profit for Q4FY25 stood at Rs. 288 crore, up 12% YoY from Rs. 257 crore and 1,100% higher than the Rs. 24 crore reported in Q3FY25. Over a three-year period, profit has grown at a CAGR of 32%, while return on equity (ROE) has improved at a 3-year CAGR of 9%, indicating steady value creation and improving profitability.
Written By Fazal Ul Vahab C H
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