This small-cap stock in the defence sector, the company is involved in producing a diverse array of heavy earthmoving machinery for the mining and construction industries, vehicles for the defence forces, and coaches for both the metro systems and Indian Railways. The stock has jumped 4% after receiving a combined order worth ₹220 crore from the Ministry of Defence.
Stock Price Movement:
With a market capitalization of Rs. 18,780.21 crores, the shares of BEML Limited reached an intraday high of Rs. 4,548.70 per equity share, rising nearly around 4.25 percent from its previous day’s close price of Rs. 4,363. Since then, the stock has retreated and is currently trading at Rs. 4,509.65 per equity share.
What Happened:
BEML Limited has secured an order from the Ministry of Defence for the supply of a 50-ton trailer valued at Rs. 83.51 crore. The trailer is designed for transporting battle tanks and boasts advanced features like a steerable turntable, an air brake system, and a payload capacity of 50 tonnes.
Additionally, the company has also secured a Rs. 136 crore contract for the supply of High Mobility Vehicles (HMV) 8×8. These indigenously designed vehicles are crucial for the Battlefield Surveillance System (BFSS) Project and offer enhanced mobility, stability, and reliability in extreme conditions.
Business Verticals
BEML functions in three main sectors: Mining & Construction, which provides machinery such as excavators and dump trucks; Defence & Aerospace, focusing on military vehicles and recovery systems; and Rail & Metro, which produces rail coaches, metro cars, and track-laying equipment, contributing to infrastructure development and defense progress.
Manufacturing Facilities:
BEML Limited has a robust manufacturing footprint throughout India, with key facilities positioned in Kolar Gold Fields, Bangalore, Mysore, Palakkad, and Tarikere, the latter through its subsidiary Vignyan Industries Ltd.
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Product Portfolio:
The company’s product range includes heavy earth-moving machinery, rail coaches, metro cars, defense vehicles, and equipment, along with mining machinery. It has supplied more than 18,000 passenger railway coaches and 1,650 metro cars to various metro corporations throughout India.
Recent quarter results and ratios:
BEML Limited’s revenue has decreased from Rs. 917 crore in Q2 FY24 to Rs. 860 crore in Q2 FY25, which has down by 6.22 percent. The net profit of BEML Limited has dropped by 1.92 percent, from Rs. 52 crore in Q2 FY24 to Rs. 51 crore in Q2 FY25.
BEML Limited’s revenue and net profit have grown at a CAGR of 7.59 percent and 44.88 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 15.2 percent and 11 percent, respectively. The debt-to-equity ratio of the company is to be 0.24x. BEML Limited’s EPS is to be Rs. 68.6.
Company Overview:
BEML Limited is originally called Bharat Earth Movers Limited and is a major Indian public sector enterprise founded on May 11, 1964. Headquartered in Bangalore, the company functions under the Ministry of Defence, Government of India.
BEML holds the distinction of being Asia’s second-largest producer of earth-moving equipment and plays a vital role in key sectors such as defence, railways, power, mining, and infrastructure.
Written By – Nikhil Naik
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