Synopsis:
BEML Ltd touched an intraday high of Rs. 4,059, rising 1.87 percent after signing an MoU with TuTr Hyperloop, bagging a Rs. 282 crore defence order, and Q1 results are scheduled for August 11.
A defence and Infra stock saw mild gains in early trade on Tuesday after announcing two significant updates, a technology collaboration in the high-speed transportation segment and a fresh defence order.
BEML Ltd with a market capitalisation of Rs. 16,620.32 crore, opened at Rs. 4,039 against its previous close of Rs. 3,984.70. The stock touched an intraday high of Rs. 4,059, marking a gain of 1.87 percent over the previous close.
What’s the News?
BEML Ltd has entered into a non-binding Memorandum of Understanding (MoU) with TuTr Hyperloop Pvt. Ltd. for jointly developing and deploying high-speed mobility solutions such as Hyperloop, Linear Induction Motor (LIM)-based cargo transport, and customized wagons. As per the MoU, TuTr will act as the design partner, while BEML will serve as the manufacturing partner for all associated projects under this collaboration.
In addition to the above collaboration across transportation, BEML has also secured a defence order worth approximately Rs. 282 crore from the Ministry of Defence for the supply of HMV 8X8 vehicles.
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Financial Snapshot
BEML reported a net profit of Rs. 293 crore on revenues of Rs. 4,022 crore in FY25. The company has delivered a healthy 3-year compounded profit growth of 32 percent. Its return ratios remain strong with ROCE at 15.6 percent, ROE at 10.5 percent, and ROA at 5.1 percent.On the leverage front, BEML has a low debt-to-equity ratio of 0.08.
However, the stock currently trades at a Price-to-Earnings (PE) ratio of 56.7, which is significantly higher than the industry average of 43.3, indicating a possible overvaluation relative to sector peers.
About the Company & Operations
BEML Ltd is a diversified engineering company engaged in manufacturing earthmoving equipment, metro coaches, and defence mobility vehicles. It serves critical sectors such as mining, construction, defence, and railways. The company’s Board will meet on Monday, August 11, 2025, to consider and approve the unaudited financial results for Q1FY26.
BEML operates across three primary business verticals, Mining and Construction (54 percent of revenue), Defence and Aerospace (27 percent), and Rail and Metro (19 percent). As of FY25, the company holds a robust order book worth Rs. 14,610 crore, reflecting strong visibility in project execution across segments.
The company has a global presence, having exported over 1,400 equipment units to 72 countries. Its defence products have been supplied to nations like Israel, Sri Lanka, Bhutan, Suriname, and Honduras, while mining and construction equipment is deployed across global markets. In the rail and metro segment, BEML exports products to Sri Lanka and Bangladesh.
Written By Manan Gangwar
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