BEML Expects Order Book To Nearly Double This Fiscal

Shares of Bharat Earth Movers Ltd. hit an all-time high on Wednesday as ti continues to get fresh orders.

On Aug. 22, the company secured an order worth Rs 101 crore from the Ministry of Defence for supplying command post vehicles to the army, according to an exchange filing on Tuesday. BEML has been receiving sizable orders over the past two months.

The current order book of the company stands at around Rs 12,800 crore, after the Bangalore Metro Rail Corp. contract, said Shantanu Roy, chairman and managing director at BEML.

Of this order book, approximately Rs 3,500 crore worth of orders are executable in FY24 and the company expects additional orders worth Rs 1,000 crore from the mining and construction segment that are to be executed in FY24 as well, he told BQ Prime's Hiral Dadia in an interview.

BEML started this year with Rs 9,000 crore of orders, and expects to end this year with an order book of around Rs 17,000 crore, he said.

"We hope to end the current financial year with a landmark increase in defence and aerospace sales revenue, which we expect to be at least more than 70%, as compared to last year," Roy said.

The company aims growth at 25% CAGR year-on-year, riding mainly on the defence aerospace, and rail and metro segments, he said.

Shares of BEML rose as much as 4.87% before paring gains to trade 2.07% higher at 10:59 a.m. This compares with an unchanged NSE Nifty 50.

The share price hit a record high of Rs 2,183.70 apiece, having risen over 40% year to date. The total traded volume so far in the day stood at 3 times its 30-day average. The relative strength index was at 72.25, implying that the stock is overbought.

Of the three analysts tracking the company, one maintains a 'buy' rating on the stock, one recommends a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 14.6%.

Watch the full interview here: