Shares of BEML Ltd. surged almost 7% on Monday after the government cleared a major metro rail project in Bangalore and Thane.
According to a PIB circular by the Ministry of Housing and Urban Affairs, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved two major metro rail projects: Phase 3 of the Bangalore Metro Rail Project and the Thane Integral Ring Metro Rail Project.
The Bangalore Metro Rail Project's Phase 3 involves the development of two elevated corridors spanning a total of 44.65 kilometres with 31 stations. Corridor-1 will run 32.15 kilometers from JP Nagar 4th Phase to Kempapura, with 22 stations along the western outer ring road.
Corridor-2 will extend 12.50 kilometres from Hosahalli to Kadabagere, encompassing 9 stations along Magadi Road. Upon completion, Bengaluru's metro network will total 220.20 kilometers. The estimated cost for Phase 3 is Rs 15,611 crore.
The Thane Integral Ring Metro Rail Project will create a 29-kilometre corridor around the western periphery of Thane city, with 22 stations. The corridor will run between the Ulhas River and Sanjay Gandhi National Park. The Government of India and the Government of Maharashtra, along with contributions from bilateral agencies, have projected this project to cost Rs 12,200.10 crore. The project is expected to be completed by 2029.
Shares of the company rose as much as 6.80% to 3,985.75 apiece. It pared gains to trade 4.07% higher at Rs 3,884.10 apiece as of 01:36 p.m. This compares to a 0.40% advance in the NSE Nifty 50.
The stock has risen 87.70% in the last 12 months. Total traded volume so far in the day stood at 1.4 times its 30-day average. The relative strength index was at 38.
Out of five analysts tracking the company, four maintain a 'buy' rating and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 15.4%.
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