HDFC Mutual Fund raises stake to 7.27% in this beaten down mid-cap stock

HDFC Mutual Fund has raised its stake in midcap stock BEML to 7.37 percent from 5.23 percent earlier.

According to the disclosure, HDFC Mutual Fund, through its various schemes, acquired an additional 8,49,308 equity shares of BEML Limited. Before the acquisition, the fund's holding stood at 5.23 percent, representing 21,79,541 shares with voting rights. Following the transaction, its total holding increased to 30,28,849 shares, equivalent to 7.27 percent of the paid-up equity share capital of the company.

The acquisition took place through open market transactions on February 24, 2025. The total paid-up equity share capital of BEML Limited remained unchanged at Rs. 41,64,45,000, comprising 4,16,44,500 equity shares of Rs. 10 each.

The increase in stake was undertaken by various schemes under HDFC Mutual Fund, including HDFC BSE 500 ETF, HDFC BSE 500 Index Fund, HDFC Defence Fund, HDFC Balanced Advantage Fund, HDFC Manufacturing Fund, HDFC Equity Savings Fund, HDFC NIFTY500 Multicap 50:25:25 Index Fund, HDFC NIFTY Smallcap 250 ETF, HDFC NIFTY Smallcap 250 Index Fund, and HDFC Small Cap Fund.

The increased stake by HDFC Mutual Fund signals strong institutional interest in BEML Limited, a key player in defense and heavy engineering sectors. With a growing order book and government focus on defense indigenization, BEML has been a preferred pick among investors. The acquisition highlights confidence in the company’s long-term growth prospects and operational performance.

The regulatory filing also confirms that HDFC Mutual Fund does not belong to the promoter group of BEML Limited, maintaining its position as an institutional investor.

Stock Price Trend

The stock has lost over 33 percent of its investor wealth just in February after a 5.5 percent decline in January and 4 percent in December. Meanwhile, it has fallen over 22 percent in the last 1 year.

In intra-day deals today, the stock lost 2.5 percent to its day's low of ₹2555.10. The midcap stock is now over 53 percent away from its peak of ₹5,489.15, hit in July 2024, whereas, it is up just around a percent from its 52-week low of ₹2,536.00, recorded on February 24, 2025.

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