Miniratna PSU stock, BEML which is engaged in both the railway and defence segments, has made a major announcement during the Aero India 2025. On February 10, BEML unveiled its new brand identity, 'Infinix,' at the prestigious Aero India 2025. This comes ahead of BEML's upcoming dividend reward of Rs 14 per share for which it will turn ex-dividend on February 14. Brokerage Elara Capital has recommended ACCUMULATE on BEML stock ahead of ex-date.
BEML Share Price:
BEML stock price stood at Rs 3,086.35 apiece on BSE after market hours on February 10. The market cap of the company is about Rs 12,852.95 crore. The stock's 52-week high and low is at Rs 5,489.15 apiece and Rs 2,675.15 apiece.
Its price-to-equity ratio is at 48.82x, while its return on equity is about 10.31% as of February 10, 2025.
BEML Aero India 2025:
In a major development, BEML unveiled its new brand identity, 'Infinix,' at the prestigious Aero India 2025. BEML's Infinix logo represents more than a rebranding-it is a profound transformation. The freed Phoenix, breaking out of its circular boundary, symbolizes limitless aspirations and an unyielding commitment to innovation, agility, and excellence. Its outstretched wings embody BEML's relentless pursuit of breakthrough solutions across Air, Land, and Sea.
As per the regulatory filing, the name 'Infinix'-a fusion of 'Infinity' and 'Phoenix'-draws inspiration from aerodynamic precision, mirroring BEML's expertise in cutting-edge engineering, mobility solutions, and future-ready technologies. Its fluid, dynamic form represents power, speed, and a forward-thinking vision that drives BEML to redefine industries.
This rebranding marks a new era for BEML-not just a visual shift but a powerful declaration of ambition, innovation, and impact. The 'Infinix' identity underscores BEML's mission to shape the future, delivering next-generation solutions that empower India and the world.
BEML Dividend:
The defence player has announced an interim dividend of Rs 5 per equity share with a face value of Rs 10 each (i.e. 50% of paid-up share capital) for the financial year 2024-25.
The record date is fixed on February 14, 2025, for payment of said interim dividend to the eligible equity shareholders.
Accumulate BEML Stock:
According to Elara Capital, BEML (BEML IN) revenue fell in Q3, likely due to a significant drop in revenue from the rail & metro (R&M) segment due to postponement in execution of the Mumbai Metro order. Q3 revenue fell 16% YoY to INR 8.8bn, 18% lower than its estimates. Also, Orderbook as of December 2024 stood at INR 151.4bn, surging 32% QoQ, with a book-to-bill of 3.9x TTM FY25E revenue. Order inflows spiked 761% YoY to INR 45bn in Q3FY25, led by the receipt of a large Chennai Metro Rail (CMRL) order of INR 37bn for the supply of standard gauge metro rolling stock (EMU) during Q3.
Elara expects R&M to pick up momentum in FY26, given the pipeline for Mumbai Metro 4, 5 & 6 lines and Bhubaneshwar Metro projects.
On the valuation, Elara's note said, "We lower our FY25E earnings by ~12%, and FY26E by ~5% and~ 8% by FY27E on delayed execution of rail & metro along with an overall slowdown in government capex in railways dragging order inflows in the future. We lower our TP to INR 3,885 from INR 4,190 on 35x (unchanged) December FY26E P/E, due to an earnings decline during the quarter."
It added, "We reiterate Accumulate due to the robust increase in order book and huge potential for growth in both rail & metro and defence sectors in the next 2-3 years. We expect an earnings CAGR of 20% during FY24-27E with an average ROE and ROCE of 13% each during FY25-27E. The slowdown in order inflows and persistent execution delay are key risks to our call."
BEML Limited is a leading multi-technology 'Schedule A' company under the Ministry of Defence, which plays a pivotal role in serving India's core sectors like Defence, Rail, Power, Mining and Construction by offering world-class products.
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