Rs 20.5/Sh Dividend: ACCUMULATE Miniratna Defence PSU Stock BEML After Big Rs 867 Cr Deal, PL Sets Rs 4,484/TP

BEML Ltd, is among the top midcap picks of Prabhudas Lilladher. The broker is optimistic about the stock after the company bagged a massive Rs 866.87 crore order. PL has set a target price of Rs 4,484. Currently, the stock is below Rs 4,050 levels and has surged by over 42% year-to-date.

As per regulatory filing, BEML bagged a contract for the design, manufacturing, and commissioning of two high-speed trainsets, each comprising 8 cars by Integral Coach Factory (ICF), Chennai. The price of each car is ₹27.86 Crs and the total contract value is ₹866.87 Crs 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 mph.

Prabhudas Lilladher said, "This project will see the first indigenously designed and manufactured trainsets with a test speed of 280 mph, marking a major milestone in India's high-speed rail journey."

Adding, it said, "The stock is trading at a PE of 39.4x/29.0x/22.2x on FY25/26/27E earnings. We have an 'Accumulate' rating with a TP of Rs4,484."

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. BEML operates in three verticals viz.