BEML hits three-month high; stock up 21% in one month

Mumbai metro
Shares of BEML surged 8% to Rs 848 on the BSE on Monday, extending its past one month rally, after the company bagged contract worth of Rs 30.15 billion from the Mumbai Metropolitan Region Development Authority (MMRDA) to supply rolling stock on Metro corridors 2A, 2B and 7. The stock was trading at its highest level since September 4, 2018.

“The scope of work includes design, manufacture, supply, testing & commissioning of 378 metro coaches, supply of spares and training of personnel. As per the contractual timelines, train deliveries are scheduled to commence from July 2020 until September 2022,” BEML said in a regulatory filing on November 23, 2018.

In the past one month, the stock has outperformed the market by surging 21% as compared to a 2% rise in the S&P BSE Sensex.

Meanwhile, according to a PTI report, BEML, the country's largest railway coach maker, has pitched for indigenisation of at least six rakes of bullet train coaches in collaboration with its Japanese partner Hitachi.

Japanese companies Hitachi and Kawasaki will bid to be the main contractor in the Japan government-assisted Ahmedabad-Mumbai bullet train project.

The $15-billion project envisages 24 rakes comprising 240 coaches, which would run between Mumbai and Ahmedabad.  BEML is keen on undertaking the entire interior work that is termed as 'level three indigenisation', added report.

At 03:09 pm, BEML was trading 7.5% higher at Rs 842 on the BSE, against 0.85% rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly four-fold with a combined 5.7 million equity shares changing hands on the BSE and NSE so far.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel