This small-cap stock in the railway/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 an order value of Rs. 3,658 crore from Chennai Metro Rail Limited
Stock Movements:
In Thursday’s trading session, BEML Limited‘s share jumped to an intraday of 3.61 percent from the previous close of Rs. 4,187.90. The stock opened at Rs. 4,201 and is currently trading at Rs. 4,286.85, with a high of Rs. 4,338.95 and a low of Rs. 4,185.80. The market capitalization now stands at approximately Rs. 17,852.37 crore.
What Happened
BEML Limited has secured a contract from Chennai Metro Rail Limited valued at approximately Rs. 3,658 crore. The contract covers the design, manufacture, supply, testing, commissioning, personnel training, and 15 years of comprehensive maintenance for standard gauge metro rolling stock and depot machinery.
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, originally called Bharat Earth Movers Limited, 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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