Homemarket News

    BEML loses steam a day after its biggest jump in 17 months — here's why

    BEML loses steam a day after its biggest jump in 17 months — here's why

    BEML loses steam a day after its biggest jump in 17 months — here's why
    Read Time
    2 Min(s) Read
    Profile image

    By CNBCTV18.com  IST (Published)

    Mini

    BEML was trading 3.64 percent lower at Rs 1,717 per share on BSE at the time of writing. It has gained 30.63 percent in the last one month and is up 4.48 percent this year.

    BEML shares declined nearly 4 percent on Friday, a day after they skyrocketed nearly 20 percent on optimism as the company decided to meet on August 18 to fix a record date to determine eligible shareholders for the shares being issued by BEML Land Assets under the demerger scheme.
    The stock was trading 3.64 percent lower at Rs 1,717 per share on BSE at the time of writing. It has gained 30.63 percent in the last one month and is up 4.48 percent this year.
    The stock hit a high of Rs 1,833 per share on Thursday, up 19.55 percent, the highest single-day jump since March 2021. However, it lost steam to settle at 16.25 percent higher at Rs 1,782.35 apiece.
    "The Board of Directors of the Company is scheduled on 18/08/2022 ,inter alia, to consider and approve To fix the Record Date for striking the list of eligible shareholders for considering 1:1 issue of shares by BEML Land Assets Limited as per Scheme of Arrangement for Demerger approved by Hon'ble Ministry of Corporate Affairs," said a regulatory filing.
    Established in July last year, BEML Land Assets is the company's wholly-owned subsidiary, incorporated with the purpose of demerger of surplus and non-core assets identified by the government as a part of its disinvestment strategy.
    Sources had told Network18 last month that BEML, along with IDBI Bank, remains on the government's priority list for divestment.
    In a separate development, BEML on Thursday executed an export order worth $19.76 million for Cameroon government for supply of construction equipment.
    The order is for the supply of 71 earth-moving machines for the preparation of agricultural land for the Cassava Project under the Government of India's credit line.
    Analysts remain positive on the stock as they think the company is positioned well to capitalise on opportunities in metro, defence, railway and mining, as per a Mint report
    "We expect defence and rail segments to drive growth in the near term, led by healthy opportunities. For the defence segment, orders are expected for high-mobility vehicles for various defence programmes, 50T trailers, overhauling of tanks and aggregates, aggregates & structures for the national programmes etc. We have a BUY rating on BEML with a Target Price of Rs2,000," Arafat Saiyed - Senior Research Analysts at Reliance Securities, was quoted as saying in the report.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng