The Ministry of Defence (MoD), has accorded "in-principle" approval for closure of Vignyan Industries in Karnataka, a subsidiary of BEML.
Further, MoD has requested BEML to initiate process in accordance with DPE guidelines relating to time bound closure of sick/loss making CPSEs, BEML said on Tuesday (7 July).Shares of BEML rose 0.48% at Rs 654 on BSE. The scrip hovered in the range of Rs 643 to Rs 658.80 so far.
On the technical front, the stock's RSI (relative strength index) stood at 58.085. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading in between its 50-day moving average (DMA) placed at Rs 605.31, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 794.60, would act as a resistance in the upcoming trade.
BEML's net profit rose 13.5% to Rs 184.85 crore on 22% decline in revenue from operations to Rs 1,065.46 crore in Q4 March 2020 over Q4 March 2019.
State-run BEML operates in three verticals viz. defence & aerospace, mining & construction and rail & metro. As on 31 March 2020, the Government of India held 54.03% stake in the company.
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