BEML Ltd., a state-run company, is making headlines after securing a significant contract worth ₹405 crore from the Bengaluru Metro Rail Corporation (BMRCL). This deal, announced on March 27, 2025, encompasses the design, manufacture, supply, installation, testing, and commissioning of standard gauge metro cars. Additionally, the contract includes training personnel and providing comprehensive maintenance for up to 15 years under the Bengaluru Metro Rail Projects.
Following the announcement, BEML shares experienced a substantial surge, closing at ₹3,239 apiece, up 17.3% in the last trading session. This upward trend continued into Friday, March 28, with shares climbing as much as 7% to ₹3,367.90 on the National Stock Exchange (NSE) during intra-day trading. The stock has rallied approximately 32% over the past month, recovering significantly from its 52-week low of ₹2,350, which was recorded on March 3, 2025.
Analysts are optimistic about BEML's future, particularly in the rail and metro (R&M) sector, which is expected to gain momentum in FY26. This optimism is fueled by upcoming projects, including the Mumbai Metro lines 4, 5, and 6, as well as the Bhubaneswar Metro projects. Furthermore, BEML is planning to establish a mining equipment manufacturing plant in Chhattisgarh, aimed at producing high-performance dump trucks, water sprinklers, and motor graders to meet the growing demands of the mining and infrastructure sectors.
On March 27, 2025, in a notable move, Motilal Oswal Financial Mutual Fund acquired a stake in BEML through block deals, purchasing 2.66 lakh shares at an average price of ₹3,048.3 per share. Prior to this acquisition, Motilal Oswal held less than 1% of BEML's shares at the end of the December quarter, which may explain its absence from previous shareholding reports. Other mutual funds, including Invesco, Kotak Mahindra Bank, HDFC Small Cap Fund, and ICICI Prudential, have holdings ranging from 1.83% to 6.15% as of the December quarter.
Despite the recent gains, BEML's stock has seen a decline of 12.18% over the past six months and is down 21.39% year-to-date. The company's market capitalization currently stands at ₹13,045 crore, reflecting its significant role in India's core sectors such as Defence, Rail, Power, Mining, and Construction.
In addition to the recent contract with BMRCL, BEML has been proactive in forming strategic partnerships to enhance its capabilities. On March 12, 2025, BEML signed a non-binding Memorandum of Understanding (MoU) with Siemens India to explore opportunities in the semi-high-speed and suburban passenger train segments, as well as metro and commuter rail markets. Furthermore, a collaborative effort with Dragflow S.R.L. of Italy aims to strengthen indigenous dredging solutions.
Last month, BEML also entered into a strategic partnership with STX Engine, a renowned South Korean company, to co-develop, manufacture, and market Battle Tank engines, marine engines, spares, and engine aggregates. This partnership is expected to cater to India’s defence needs while exploring export opportunities to friendly nations.
Analysts at Elara Capital have indicated that revenue from mining and construction, which accounted for 43% of BEML's share in FY24, along with defence and aerospace, which represented 19%, may have increased due to the execution of a robust order book. However, revenue from R&M, which comprised 38% of the share in FY24, might have faced challenges due to delays in the Mumbai Metro projects.
As the market continues to react to BEML's recent developments, investors are advised to keep a close eye on the company's performance, particularly as it gears up for a potentially lucrative FY26. The average target price for BEML stock, according to Trendlyne data, is projected at ₹3,838, indicating a potential upside of 22% from current market prices.
In conclusion, BEML's recent contract win and strategic partnerships position the company well for future growth, despite the challenges it has faced in recent months. With a renewed focus on infrastructure and a diversified portfolio, BEML is set to play a pivotal role in India's development trajectory.
