Why BEML Share Price is Rising

BEML, India's largest defence, mining & construction, and rail coach manufacturer, experienced a remarkable surge in its share prices on Monday, with a 10% increase, reaching a 52-week high of Rs 2056.5. This surge marked the stock's highest level since December 2021.

The trading session on Monday began with BEML's stock opening at Rs 1,855.9, and as the day progressed, the share prices climbed steadily, eventually ending the trading day at Rs 2005.

This upward trajectory was a remarkable development for the company, as it reflected a substantial growth rate of 24% over the past month.

The sudden and substantial rise in share prices left investors surprised and curious.

Read on to find out what led to the sudden rise in the.

#1 Bulk Deal

Graviton Research Capital, a privately BEML Share price funded quantitative trading firm, on Monday, bought a little over Rs 5.5 billion (bn) worth of shares through an open market transaction.

According to bulk deal data available with the exchanges, Graviton Research Capital bought a total of 276,767 shares of the BEML.

The shares were bought for Rs 1,988.92 apiece, taking the transaction size to Rs 5.5 bn.

Following the deal, shares of BEML rallied 10%, touching its 52-week high.

#2 Change in guard

The appointment of Shantanu Roy as the Chairman & Managing Director (CMD) of the company On 31 July 2023 has further led to a positive impact on the share price.

With more than 30 years of experience in the capital goods sectors, including defence, mining, construction, transportation, transmission, renewable, and large power projects, Roy brings strong leadership and expertise to the position.

Such experienced leadership is often viewed favourably by investors, enhancing confidence in the company's future prospects.

Moreover, Roy's prior experience is evident in successfully positioning BHEL in the international market. He achieved a major milestone by securing a significant export order worth US$ 1.5 bn for 2X660 MW Maitree STPP in Bangladesh.

This accomplishment serves as a testament to his capabilities in expanding the company's presence and revenue streams beyond domestic markets.

What Next?

BEML is already a major supplier of defence equipment to the Indian Army, Navy, and Air Force. It is now looking to expand its product portfolio to include new areas such as UAVs, missile systems, and space launch vehicles.

With exporting its products to over 38 countries in Asia, Africa, Europe, and Latin America, the company is looking to increase its exports in the coming years by targeting new markets and developing new products.

The company is planning to invest Rs 9 bn in expanding its production capacity for metro coaches.

Furthermore, the company is looking to improve its operational efficiency by streamlining its processes and reducing costs. The company is also looking to invest in new machinery and equipment to improve its production capacity.

How BEML shares have performed recently

BEML shares have rallied over 24% in a month. Over the past week, the company's shares are trading up by 9%.

On a YTD basis, BEML share price is up over 30%.

BEML touched its 52-week high of Rs 2,056.5 on 31 July 2023 while it touched a 52-week low of Rs 1,019.8 on 1 August 2022.

About BEML

BEML is a Public Sector Undertaking for manufacture of rail coaches and spare parts and mining equipment at its Bangalore Complex.

The company has emerged in the forefront of heavy engineering industry with a track record of growth and revenues for over four decades.

The company is a multi-technology company offering high-quality products for diverse sectors of economy such as coal, mining, steel, aviation, defence, metro, and much more.

BEML operates on three major business verticals for associated equipment manufacturing namely mining & construction, defence and rail & metro.

In addition to the above, the company also operates three strategic business units (SBUs) namely technology division for providing end-to-end engineering solutions, trading division for dealing in non-company products and international business division for export activities.

For more details, see the BEML company fact sheet and quarterly results.

And for a sector overview, read our engineering sector report.

You can also compare BEML with its peers.

BEML vs BHEL

BEML vs Bharat Electronics

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