BEML share price soars 8% on ₹867-crore order win, technical experts see further upside for the PSU stock

BEML share price surged nearly 8% on Wednesday's session after securing a contract worth ₹867 crore from Integral Coach Factory, Chennai for the design and manufacture of High Speed Rail. BEML share price today opened at ₹3,788.95 apiece on the BSE, the stock touched an intraday high of 4,009.25 per share, and an intraday low of 3,775 apiece.

“After a recent correction from the 5,400 levels, the BEML share prices are forming a base around the 200SMA; today the prices are witnessing positive traction backed with volumes; if prices continue to hold 3,800, then we can expect a move towards 4,500,” said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

Similarly, Ruchit Jain, Lead Research Analyst at 5paisa, advised that BEML shares have recently formed a support base in the range of ₹3,450–3,400. The downside seems to be limited from here, and hence positional traders can look for buying opportunities here with a stop loss below ₹3,420.

Deal Win

The cost of manufacturing each coach for the two trains, as stated by BEML, is ₹27.9 crore, which is much lower than the approximate cost of ₹46 crore for each Shinkansen E5 coach, as emphasized in the report by ICICI Direct Research.

The first indigenous high-speed train capable of reaching a top speed of 280 kmph will be produced by BEML. It is expected that two trains, each consisting of eight coaches, will be introduced within the next two years.

In an exchange filing, the company indicated that this contract enhances BEML's standing as a top manufacturer of rolling stock and reiterates its dedication to India's goal of a swifter and more effective rail network.

In its report, ICICI Direct Research emphasized that these trains will be suitable for standard gauge tracks and could operate on the Ahmedabad-Mumbai bullet train network, according to sources. The Integral Coach Factory placed the order at a time when the railways are in discussions with Japan regarding the procurement of Shinkansen E5 series bullet trains.

BEML Limited, classified as a top-tier 'Schedule A' company under the Ministry of Defence, holds a crucial position in supporting India's key industries such as Defence, Rail, Power, Mining, and Construction.

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