Strong metro rail order book, indigenisation initiatives bode well for BEML

New project wins and other segments will strengthen the already strong revenue visibility of three and a half years

Shares of BEML are up a good 60 per cent from their March lows. Though there are some near-term concerns on new order flows and project execution in the backdrop of lockdowns, the company's existing order book of close Rs 10,000 crore as on end March 2020 provides good revenue visibility of three and a half years.
 

Primarily driven by metro rail coach orders, the share of mining and construction equipment is also decent in the order book. While BEML had won prestigious order for supply of additional metro coaches for Mumbai lines worth Rs 834 crore, it also bagged