Strong metro rail orders, indigenisation initiatives bode well for BEML

New project wins and other segments will strengthen the already strong revenue visibility of 3.5 years

Shares of BEML are up 60 per cent from their March lows. While there are some near-term concerns on new order flows and project execution due to present lockdowns, the existing order book of Rs 9,800 crore as of March-end provides good revenue visibility.
 

Primarily driven by orders for metro rail coaches, the share of mining and construction equipment is also decent in the order book. While BEML had won the order for supply of additional metro coaches to Mumbai lines worth Rs 834 crore, it also bagged Rs 730 crore worth orders from the Delhi Metro during FY20. In