PSU Stock Surges 8% After Winning ₹250 Cr Order

BEML‘s share price rose 8% in the morning session after the company won a ₹250 crore order. 

What Happened: BEML announced it won a contract from Northern Coal Fields for dump truck contracts worth ₹250 crore. 

On May 12, the company had declared its quarterly results for the March quarter. Net profits rose 62.85% year-on-year to ₹256.80 crore. Its revenue from operations gained 9.05% YoY to ₹1,513.65 crore. The company's EBITDA increased 29.14% YoY to ₹370.39 crore from ₹286.80 crore in the previous year.  

The company also declared a final dividend of ₹15.50 per share. 

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Brokerage Views: Prabhudas Lilladher had downgraded the stock to "Accumulate" from "Buy" rating due to the run-up in the stock. However, the brokerage is bullish on the company's prospects due to opportunities in the railway and metro space. 

The company has a significant opportunity pipeline in rail and metro worth ₹58,000 crore in FY25 out of which ₹44,000 crore in rail and ₹14,000 crore in metro and ₹32,000 crore in FY26 which can boost the order book. Metro cars in Mumbai, Chennai, Patna and Vande Bharat rolling stock are prospects for the company. 

The brokerage said the company also has a defence order pipeline of ₹40,000 crore over the next 4-5 years among HRV (Heavy Recovery Vehicle), ARVS (Armoured Recovery Vehicle), combat engineering equipment, tank engines etc. which includes ₹6000 crore in FY25 and ₹6000 crore – ₹9000 crore in FY26. 

The company has plans to put capex worth 8-9% of FY24 sales which is ₹300 crore- 350 crore in FY25 to enhance their manufacturing capabilities in defence, engines, and rolling stock. 

Price Action: BEML stock rallied 8.11% to ₹4,000 in the morning session on Friday. 

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