BEML shares surge after securing Bengaluru Metro contract

BEML Shares Surge After Securing Bengaluru Metro Contract  

Shares of BEML, a leading earthmoving equipment manufacturer, climbed nearly 7% on March 28 following the announcement of a ₹405 crore contract from Bengaluru Metro Rail Corporation Limited (BMRCL). However, the stock later trimmed some of its gains.  

This marks the second consecutive day of gains for BEML, which had already surged over 17% on March 27. The company, in an exchange filing, confirmed that the contract involves the design, manufacturing, supply, and commissioning of standard gauge metro cars, along with personnel training for up to 15 years under the Bengaluru Metro Rail Projects.  

Also Read: Bengaluru’s ‘Metro Trap’: Why an IIM investment advisor suggests leaving for a simpler life

During intraday trading, BEML shares peaked at ₹3,368 per share, their highest level in over a month, before pulling back.  

Aiding the rally, Motilal Oswal Mutual Fund acquired 2.67 lakh BEML shares at an average price of ₹3,048.30 per share on March 27. Additionally, the stock's strong movement was fueled by the Chhattisgarh government inviting BEML to establish a state-of-the-art mining equipment manufacturing facility in the state. This invitation was formally extended by Chief Minister Vishnu Deo Sai to BEML Chairman and Managing Director Shantanu Roy during an investor conference in Bengaluru.  

BEML shares have surged over 31% in the past month, rebounding significantly from their 52-week low recorded on March 3. However, the stock remains well below its 52-week high of ₹5,488 per share.