Miniratna Defence PSU BEML Bags 866 Cr Order From ICF, Should You Buy Or Sell?

Defence sector public sector undertaking BEML Ltd shares slipped marginally today despite bagging Rs 866.87 crore order from Integral Coach Factory (ICF) on October 15, 2024. Current market price of BEML Ltd shares on BSE stood at Rs 3727.25 crore. The company's market capitalisation stood at Rs 15,521.95 crore. Its ROE is 10.88 and PE is 54.01. Earlier this year, BEML Ltd declared an attractive dividend of Rs 15.50 per share traded ex-dividend on September 13, 2024. Check details below:

BEML Ltd Receives New Order: As per the press release issued today, "BEML Limited has been awarded a contract for the design, manufacturing, and commissioning of two high-speed trainsets, each comprising 8 cars by Integral Rs 866.87 Crores which includes design cost, one-time development cost, non-recurring charges, onetime cost towards Jigs, fixtures, tooling and testing facilities, which will be utilised for all future High-Speed projects in India. This project marks a significant milestone in India's high-speed rail journey and will see the first indigenously designed and manufactured trainsets with a test speed of 280 kmph."

The trainsets will be built at BEML's Bengaluru rail coach complex and are scheduled for delivery by the end of 2026. Featuring a fully air-conditioned, Chair Car configuration, the trains will offer modern passenger amenities such as reclining and rotatable seats, special provisions for passengers with restricted mobility, and onboard infotainment systems, added the exchange filing of the PSU.

BEML Shares Performance: The 52-week high price of BEML shares is Rs 5489.15 per share (05/07/2024) and 52-week low price is Rs 1904.50 per share (as on 26/10/2023), respectively. BEML shares fell 25% in last 3-months, gained 63% in last 1-year, and surged 146% in last 2-years. In last 5-years, BEML shares offered stellar returns of 409%.

BEML Dividend In 2024 & BEML Dividend History: As per the regulatory filing of the company issued as on May 12, BEML announced a final dividend of Rs 15.50 per equity share (i.e.155 % of paid-up share capital).BEML recommended 34 dividends since August 30, 2001. In last 1-year, BEML announced an equity dividend amounting to Rs 20.50 per share. At the current share price of Rs 3733.55, BEML offers a dividend yield of 0.55%.

BEML Q1 Performance: The Defence PSU declared a narrowing of its consolidated net loss to Rs 70.47 crore for the June 2024 quarter as against the consolidated net loss of Rs 75.01 crore in the corresponding period of last year. Its consolidated income for the April-June period surged to Rs 634.61 crore as against Rs 578.11 crore in the similar quarter of year ago period.

Should You Buy BEML Ltd Shares? According to A R Ramachandran, independent SEBI research analyst, "BEML is bearish on the Daily charts with strong resistance at 3869 on the Daily charts. A daily close below support of 3712 could lead to target of 3460 in the near term."

About: BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 as a Public Sector Undertaking for manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The Company is a listed on both Exchanges (BSE & NSE) with Government of India owning 54.03% and rest 44.97% is held by Financial Institutions, Foreign Institutional Investors, Banks, Public and Employees. BEML Limited, a 'Schedule 'A' Company under Ministry of Defence, Govt. Of India, plays a pivotal role and serves India's core sectors like Defence, Rail, Power, Mining and Infrastructure, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of A R Ramachandran. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.