Share Price of BEML Trends Higher After Securing Rs 2,501 Crore Metro Rail Order

BEML’s Share Price Momentum

Public Sector Undertaking (PSU) BEML’s share price has been on the rise for five consecutive sessions as of November 28, 2024, registering a 2% gain on Thursday alone. Over the past five trading days, the stock has climbed approximately 14%, supported by increased trading volume. Notably, the stock has seen significant activity, driven by positive developments in its business operations.

The Chennai Metro Rail Contract Boost

BEML announced that it has secured a major contract from M/s. Chennai Metro Rail Limited, worth approximately Rs 2,501 crore. The deal encompasses the design, manufacturing, supply, and comprehensive maintenance of standard gauge metro rolling stock along with depot machinery and plant for a 15-year period. This announcement has played a pivotal role in driving investor interest, given its long-term revenue implications.

Technical Analysis of BEML 

From a technical perspective, the share price is trading above its key moving averages—20-day, 50-day, and 200-day. Moreover, these moving averages are in the desired sequence, indicating a strong upward trend:

• 20-DMA above 50-DMA
• 50-DMA above 200-DMA

Segmental Performance and Order Book Growth

• Rail Metro Division: Contributed 38% of total revenue, showcasing substantial growth over the past year.
• Defence Vertical: Revenue contribution dipped from 23% to 19%, reflecting a shift in business focus.
• Order Book: Increased from Rs 8,570 crore as of March 2023 to Rs 11,872 crore as of March 2024. 

Impressive Stock Performance in 2024

• November Performance: The stock has risen 5% so far this month.
• Year-to-Date (YTD) Growth: BEML shares have surged a staggering 51%, highlighting strong investor confidence throughout the year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.