BEML Limited is making headlines as its share price surged by 5% during Friday’s trading session, following the announcement of a substantial contract worth ₹405 crore from the Bengaluru Metro Rail Corporation. This deal involves the manufacturing, supply, and installation of standard gauge metro cars, marking a significant milestone for the company. By 9:50 AM, BEML’s stock was valued at ₹3,356 on the National Stock Exchange (NSE), and it has impressively risen 32.65% over the past month.
Major Contract Boosts BEML’s Prospects
This lucrative contract not only includes the delivery of metro cars but also encompasses personnel training and a comprehensive 15-year maintenance plan as part of the Bengaluru Metro Rail Project. In a recent statement, Shri Shantanu Roy, the Chairman and Managing Director of BEML, expressed pride in reinforcing their long-standing partnership with BMRCL.
- Key Highlights:
- The new metro trainsets are designed to enhance urban mobility in Bangalore.
- BEML aims to align its offerings with the AatmaNirbhar Bharat initiative by providing indigenously manufactured solutions.
- The cutting-edge technology in these trainsets focuses on safety features and passenger comfort, promising to boost the efficiency of the city’s metro network.
Increased Investment Interest
BEML’s stock price gain was further fueled by Motilal Oswal Financial Mutual Fund, which recently acquired a stake in the company. On March 27, the financial institution purchased 2.66 lakh shares at an average price of ₹3,048.3 per share. Previously, Motilal Oswal held less than 1% of BEML’s shares, explaining its absence from earlier shareholding reports.
- Additional Shareholding Insights:
- As of December, mutual funds like Invesco, Kotak Mahindra Bank, HDFC Small Cap Fund, and ICICI Prudential all held stakes in BEML, ranging from 1.83% to 6.15%.
- Despite the recent positive developments, BEML’s stock has seen a 12.18% decline over the past six months and is down 21.39% year-to-date.
Looking Ahead
BEML’s commitment to innovation and excellence in rail infrastructure positions it as a key player in India’s growing metro landscape. The latest contract not only boosts their portfolio but also opens new avenues for growth and collaboration within the industry. As BEML continues to develop state-of-the-art solutions, stakeholders eagerly anticipate its impact on the future of urban transportation in Bangalore and beyond.
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