BEML on the high road

BEML today opened almost 2% higher at Rs.1398 and rose to Rs.1420.95, going up 3.5%. Last week, on 9th March the PSU had hit a new high at Rs.1544.25.

The company announced yesterday after market hours that under the Ministry of Defence (MoD), it has received export orders from Cameroon and Bangladesh under Government of India-Lines of credit.

The order for Cameroon has been received from Ministry of Economy, Planning & Regional Development (MOEPRD), Government of Cameroon for supply of 71 units of construction equipment consisting of Bulldozers, Excavators, Wheel Loaders, Motor graders and Compactors for their Cassava Farm Project.

The order for Bangladesh has been received from Ministry of Roads & Highways Department, Government of Bangladesh for supply of construction equipment consisting of Wheel Dozer for their construction, Repair and Maintenance of Road and Infrastructure projects in Bangladesh.

Valuing at around USD 23 Million, these equipments will be having more than 90% indigenous content and will be manufactured at BEML’s KGF and Mysore plants in Karnataka.

The Govt, which has a 54% stake in BEML has invited Expressions of Interest (EoI) for 26% stake sale, along with transfer of management control. The EoI opened on 4th Jan and will be open for bids till 22nd March.

The grapevine is that many companies are lining up for the stake and prominent names which have popped up of having put in a bid are – Tata Motors, Mahindra & Mahindra, Ashok Leyland, Bharat Forge and Megha Engineering.

This export order intake only goes to add more value to the PSU.