Miniratna stock in focus after securing ₹157 Cr order from Loram Rail Maintenance India

Synopsis:
BEML has recently received a work order of Rs. 157 Crores from Loram Rail Maintenance India Private Limited for supply of machinery for Indian Railways.

The shares of this engineering company engaged in manufacturing wide range of heavy earthmoving equipment catering to the defence, mining, construction and other sectors were in focus upon receiving a new work order.

With a market capitalization of ~14,700 Crores, the shares of BEML closed at around  Rs. 1765.5, which is 28 percent down from its 52 week high price of Rs. 2437. It is trading at a P/E of 49.8 whereas the industry PE stands at 36.3

What is the News

BEML Limited has received a work order of Rs. 157 Crores from Loram Rail Maintenance India Private Limited. Under this project the company will manufacture the Switch Rail Grinding Machines which will be later supplied to Indian Railways for the track maintenance. 

The company has recently received a work order of Rs. 414 Crores from Bangalore Metro Rail corporation limited (BMRCL) for the supply of additional trainsets for Bangalore Metro Rail Project, Phase II.

Company Overview & Financial Highlights

BEML is an engineering company indulged in manufacturing heavy earth moving equipment catering to the mining and construction industry. The company provides  inhouse developed products for the defence industry which includes bullet proof vehicles, engines for battle tanks, and command post vehicles. They also cater to the Railway industry by providing inhouse developed products such as Vande Bhart Sleeper Trains, Metro Cars, Electric Multiple Units.

The 54 percent  of the revenue is contributed by  the mining and construction segment followed by the Defence and Rail & Metro at 27 percent and 19 percent respectively. They are present across the nation and also have an international presence by exporting equipment to 72 countries. The majority stake of the company is held by the Government of India and rest by mutual funds and public.

Year-on-Year analysis: BEML’s revenue has decreased from Rs. 860 Crores  to Rs. 839 Crores down 3 percent, operating profit remains same at Rs. 73 Crores and Net profit decreased by 6 percent, from Rs. 51 crores  to Rs. 48 Crores

Quarter-on-Quarter analysis: BEML’s revenue is up on a quarterly basis from Rs. 634 Crores to Rs. 839  Crores, up by 32  percent, operating profit up from a loss of Rs. 49 crores to profit of Rs. 73 crores and net profit grew from a loss of Rs. 64 crores to a profit of Rs. 48 Crores.

Written by Vachan Kadli  

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