BEML closes 1.9% after company signs MoU with Navy for indigenisation of critical marine engineering equipment

“In a major push towards indigenisation of critical marine engineering equipment of the Indian Navy. BEML has signed a Memorandum of Understanding (MoU) with the Indian Navy on August 20,” the release said.

The MoU was concluded at the Naval Headquarters at New Delhi between Rear Admiral K Srinivas, ACOM(D&R), Indian Navy and Shri Ajit Kumar Srivastav, Director of Defence, BEML.

“This initiative is a pivotal step in enhancing bilateral cooperation for indigenous design, development, manufacture, testing and product support of critical marine engineering equipment and systems,” the release added, without elaborating on details about the pact.

Aligned with the Government of India’s Aatmanirbhar Bharat initiative, the partnership aims to strengthen self-reliance in defence production and reduce dependence on foreign OEMs, the release said.

Incorporated in 1964, BEML is a Mini Ratna company that manufactures mining and construction equipment such as bulldozers and dump trucks, rail and metro coaches and wagons, and critical defence and aerospace vehicles and components.

It has been in the news for being the manufacturer of the Vande Bharat trains.

Mining and construction makes up 43% of the company’s revenue, rail and metro constitutes 34% while the rest 19% comes from the defence vertical.

BEML shares are up 86% over the past one year and 421% over the past five years.

This is thanks to the company’s strong fundamentals: its profit has grown at annualised 60% over the past three years. BEML is virtually debt-free and at the end of FY24, it had an order book of ₹11,872 crore.

In recent developments, BEML said it was considering export Vande Bharat coaches to target markets in South America, SAARC countries and the Middle East region.