BEML, a major defense stock, saw its shares rise by 7% on September 4, after the Defence Acquisition Council (DAC) approved huge purchases worth ₹1.45 lakh crore for the Armed Forces.
This surge was driven by strong trading activity, with 17 lakh shares of BEML traded on the BSE and NSE combined, far exceeding its one-month average of 5 lakh shares.
BEML is a public sector company that makes heavy equipment for earth moving, railways, transportation, and mining. They also produce various versions of the BEML Tatra vehicle for tough terrain, as well as other military equipment like mine ploughs, tank transport trailers, weapon loaders, armored recovery vehicles, and railway coaches.
Why the Stock Jumped
BEML plays a key role in India’s missile development project by providing ground support vehicles. They also have a special test track at their KGF Complex for testing defense vehicles and equipment.
Recently, BEML started making prototypes for driverless metro trains as part of the 5RS-DM Project, which will support the Bangalore Metro Rail Corporation’s Lines 2 and 6 projects, including the Bangalore Airport Line.
In August 2023, BEML secured a contract for 53 trainsets worth around ₹3,177 crore. This project involves designing, manufacturing, supplying, installing, testing, and commissioning the trainsets, along with providing maintenance for up to 15 years under the Bangalore Metro Rail Project Phase 2, 2A, and 2B.
Earlier this week, Ashwini Vaishnaw, India’s Minister for Railways, inaugurated the country’s first Vande Bharat Sleeper trainset at BEML’s rail complex in Bangalore. This trainset was designed and built by BEML.
“This is a historic moment for the country. The much-awaited Vande Bharat Sleeper trainset is now set to run on Indian Railways tracks, providing our people with a world-class travel experience and best-in-class amenities. The dedication and expertise of BEML’s leadership and engineers have made this remarkable achievement possible,” said Vaishnaw.
BEML shares were up 5.4% at ₹4,072.25 on the National Stock Exchange.
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