BEML shares surge over 4% on Rs 385 crore order win

Shares of Defence PSU BEML surged 4.2% to Rs 1,638 in Wednesday's trade on BSE after the firm bagged an order of Rs 385 from Bharat Dynamics and Bharat Electronics for the supply of High Mobility Vehicles (HMV).

"We hereby inform that BEML has bagged an order from BDL and BEL for the supply of High Mobility vehicles (HMV). The total Contract value is Rs 385 crore," the company said in an exchange filing.

At 12.40 pm, the scrip was trading 3% higher at Rs 1,624 on BSE. On a year-to-date, the stock has risen 7%, while it has jumped 28% in the last year. BEML shares have also delivered over 150% returns to its investors in the last three years.

As per Trendlyne data, the average target price of the stock is Rs 1,898, which implies an upside potential of 17% from the current market prices. The consensus recommendation from two analysts for the stock is a 'strong buy'.

Technically, the stock's day RSI (14) is at 60.8. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 51.8, which is above its center and signal line, this is a bullish indicator.

In Q4 FY23, the BEML posted an over 18% jump in its profit. The consolidated profit surged to Rs 158 crore for the three months ended March 31, 2023, compared with Rs 133 crore in the year-ago quarter. Its consolidated revenue from operations declined 18% to Rs 1,388 crore.

Meanwhile, EBITDA climbed by 25% to Rs 287 crore in Q4FY23, as against Rs 229.6 crore in Q4FY22. EBITDA margins expanded sharply to 20.6% in Q4FY23 versus 13.6% in Q4FY22.

According to the latest shareholding pattern available with the exchanges, 54.03% of the company's shareholding is with the government of India, followed by mutual funds and resident individuals, among others.

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