BEML shares rises 22% in 2 session, up 45% in month; what's pushing the stock higher

Shares of BEML extended its gains on Friday as the stock rose another 7 per cent, taking its gains over 22 per cent in two trading sessions, including a 17 per cent rise on Thursday. The stock has been hogging the spotlight at Dalal Street after bagging Rs 405 crore from Bengaluru Metro Rail Corporation (BMRCL).

The contract is for design, manufacture, supply, installation, testing and commissioning of standard gauge metro cars and training of personnel including comprehensive maintenance up to 15 years under Bengaluru Metro Rail Projects. Rail & metro (R&M) is likely to pick up momentum in FY26, given the pipeline for Mumbai Metro 4, 5 & 6 lines and Bhubaneswar Metro projects.

Shares of BEML surged 7 per cent to Rs 3,366.10 on Friday, commanding a total market capitalization close to Rs 14,000 crore. The stock had settled at Rs 3,132.65 on Thursday, rising over 17 per cent for the day. The stock has tumbled about 40 per cent from its 52-week high at Rs 5,489.15 hit in September 2024. However, it has gained about 45 per cent from its 52-week low at Rs 2,346.35 hit earlier this month.

Besides this, the state-run defence player also announced a mining equipment manufacturing plant in Chhattisgarh, recently. This plant will focus on producing high-performance dump trucks, water sprinklers, and motor graders. This will cater to the increasing demand in the mining and infrastructure sectors, it said.

Commenting on the technical charts of BEML, HDFC Securities said that daily RSI has reached above 50, indicating sustainable uptrend. Its aily MACD is above equilibrium and signal line. The brokerage said that stock is above 10 and 20 days EMA and it has broken out from previous swing highs. HDFC Securities gave it a target price of Rs 2,910, which has already been achieved.

BEML is a multi-technology company under the Ministry of Defence. It plays a pivotal role in serving core sectors like defence, rail, power, mining and construction. BEML and Siemens India signed a non-binding memorandum of understanding (MoU) to jointly explore opportunities in the semi-high-speed and suburban passenger train segments, metro and commuter rail markets on March 12.

Among other brokerage firms, Antique Stock Broking had a target price of Rs 4,114 with a 'buy' rating on the stock. Prabhudas Lilladher had an 'accumulate' rating on BEML with a target price of Rs 3,561. Elara Capital gave it a 'reduce' rating with a target price of Rs 4,190 in January, 2025.