BEML Stock Jumps Over 20% In Two Days On Rs.405 Cr Contract From BMRCL & Chhattisgarh Gov.'s Investment Offer

Shares of Bharat Earth Movers Limited (BEML) surged 7% to Rs. 3,367.90 on Friday in intraday trade on the National Stock Exchange (NSE), despite a lackluster market. The Bombay Stock Exchange (BSE) listed construction vehicle company has risen over 20 percent in the previous two days after winning a contract worth Rs. 405 crore from Bengaluru Metro Rail Corporation Limited (BMRCL) and an investment offer from Chhattisgarh.

The contract of Rs. 405 crores under Bengaluru metro rail projects covers the design, production, delivery, installation, testing, and commissioning of standard gauge metro vehicles as well as employee training and comprehensive maintenance for a maximum of 15 years.

The Department of Commerce & Industries, Government of Chhattisgarh on Wednesday invited BEML Ltd. to invest in Chhattisgarh by establishing a top-notch mining equipment manufacturing plant, marking a major step towards promoting industrial growth and job creation. Vishnu Deo Sai, the Chief Minister of Chhattisgarh, formally invited Shri Shantanu Roy, the Chairman and Managing Director of BEML Ltd. To meet the growing demand in the mining and infrastructure industries, the proposed plant will concentrate on manufacturing high-performance dump trucks, water sprinklers, and motor graders.

About BEML:

Bharat Earth Movers Limited, commonly known as BEML is an Indian public-sector company that manufactures heavy equipment for earthmoving, railways, transportation, and mining, with its headquarters in Bengaluru. It operates in three major verticals: defence and aerospace, mining and construction, and rail and metro, which serve core sectors such as defence, rail, power, mining, and infrastructure.

Today's Share Price of PSU Stock BEML:

The current share price of BEML is 3221.70, reflecting an increase of +89.05 points (+2.84%) as of 12:31 pm on Friday. At 10:04 a.m. BEML was trading 5% higher at ₹3,302, while the Nifty 50 was down 0.14 percent. With the gains over the last two days, the stock has risen 43% from its 52-week low of ₹2,350, which was reached on March 3, 2025. On July 5, 2024, it reached a 52-week high of ₹5,488.

BEML Stock Shows Potential for Growth: Technical Expert's View

Vaishali Parekh, Vice President of Technical Research at PL Capital Group - Prabhudas Lilladher on Engineer's Day highlighted BEML as a stock to watch closely. The stock, currently priced at ₹3140, has undergone a significant correction from its previous high of ₹5488 but seems to have found strong support around ₹2346. Recently, the stock has seen a healthy rebound, trading above the key 50-day Exponential Moving Average (EMA) level of ₹2980, with increased trading volumes.

Parekh said, "BEML (CMP: 3140) after the steep correction from the 5488 level, has bottomed out near the 2346 zone, and a decent pullback witnessed above the 50 EMA level of 2980 with rising volume participation, has improved the bias to anticipate a further rise towards the 1st target of the 200 DMA level at 3830 and 4200 in the coming days."

According to the Vice President, this recent movement has improved the outlook for the stock, suggesting further potential for growth. The first target for BEML is the 200-day Moving Average (DMA) level at ₹3830, with a longer-term target of ₹4200. The Relative Strength Index (RSI) also indicates strength, pointing to possible further upside from the current price.

"The RSI is well placed and, with strength indicated, has further upside potential from the current rate. With the chart well positioned and looking good, we suggest buying the stock for an upside target of 3800-4200, keeping the stop loss of 2700," she said.

Given the positive chart setup, expert Parekh recommends buying BEML with an expected target range of Rs. 3800-4200. However, she advises investors to set a stop loss at Rs.2700 to manage risk effectively.