Shares of BEML Ltd on Friday rose sharply to scale their all-time high levels. The stock zoomed 17.95 per cent to hit a record high of Rs 5,489.15. It was last seen trading 16.55 per cent up at Rs 5,424. At this price, the multibagger scrip has gained 240.54 per cent in a year.
Today's sharp uptick in the share price came after Business Today reported that the Bangalore-based manufacturer is on track to deliver all 10 trainsets by the end of the year and is looking for a repeat order.
This assumes significance as the Indian Railways is looking to complete trials of the first Vande Bharat sleeper rakes by August. The sleeper version of Vande Bharat will have all AC coaches like Rajdhani Express and will be equipped with modern infrastructure.
BEML, a PSU, bagged the first order worth Rs 675 crore of the sleeper versions from Integral Coach Factory (ICF), Chennai last year.
Initially, the plan was that Vande Bharat sleeper would hit the rails in March, before the general elections, but it got delayed due to some technical reasons. Recently, Railways Minister Ashwani Vaishnaw said now the trials will happen by mid-August.
According to BEML, some of the items that are free issues from ICF started flowing in from May 15 and the first proto has to undergo extensive trials and the Commission of Railway Safety inspection.
The company already has a presence in making mainline and suburban rail coaches, but its recent order win for 10 Vande Bharat sleeper trainsets has enhanced its value proposition by providing an entry point into the Vande Bharat ecosystem, domestic brokerage Prabhudas Lilladher stated.
On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 73.82. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 68.48 against a price-to-book (P/B) value of 7.33. Earnings per share (EPS) stood at 67.96 with a return on equity of 10.71.
The scrip saw a high trading volume today on BSE as 1.62 lakh shares changed hands. The figure was higher than the two-week average volume of 50,000 shares. Turnover on the counter came at Rs 84.33 crore, commanding a market capitalisation (m-cap) of Rs 21,813.60 crore.