BEML Shares Fall After Recent Highs While Brokerage Retains Buy Call

Shares of defence PSU BEML Limited dropped 1.23 percent on Friday to close at 2,098 rupees and 20 paise on the BSE, ending lower after a sharp run over the past five sessions. Even with Friday's dip, the stock managed a weekly gain of 7.64 percent and touched a 52-week high of 2,236 rupees and 20 paise earlier in the week on November 11. Its total market capitalisation stood at 17,475 crore and 70 rupees at the close.

Earnings and Orders

The engineering firm posted a consolidated net profit of 33 crore and 34 lakh rupees for the second quarter of the 2026-27 financial year, marking a 30.5 percent decline from 48 crore and 30 lakh rupees in the same period last year. Higher expenses caused the profit drop, moving up to 1,150 crore and 39 lakh rupees compared to 795 crore and 83 lakh rupees previously. Meanwhile, net revenue from operations grew to 1,191 crore and 61 lakh rupees from 839 crore and 9 lakh rupees. For the first half of the year, the company recorded order inflows of about 7,500 crore rupees and held a total order book of 21,388 crore rupees as of September 2026.

Brokerage Outlook

ICICI Securities kept a Buy rating on the stock with a target price of 2,765 rupees per share, pointing to strong growth prospects in the rail and metro sectors. The brokerage expects management to hit 20,000 crore rupees in order inflows for the full financial year, with rail and metro projects making up about half of that total. Better execution and a stable domestic supply chain are expected to support the company as it shifts focus toward rail and metro manufacturing.

Context

Public sector undertakings or PSUs are companies owned or managed by the government, and many of them are listed on stock exchanges for public trading. Defence and engineering PSUs often rely heavily on large government orders for railways, metro networks, and military equipment to drive their long-term revenue. Brokerage firms issue ratings like Buy to help investors understand a stock's potential value based on expected future earnings and order books.