If you’re among those investors who love to track stocks that skyrocket after a share split, then BEML Limited should definitely be on your radar. This major player in the defence and infrastructure sector is set to discuss a share split on July 21. Before you rush to decide whether to buy or not, let’s break down what’s happening and what this could mean for investors.
BEML’s Upcoming Share Split
A share split means that the company divides one share into multiple smaller shares to make them more affordable for retail investors.
For example, if BEML announces a 1:5 split, your 1 share worth ₹4,530 (current market price) will become 5 shares worth ₹906 each (approx). The total value remains the same, but the stock looks cheaper and becomes more accessible for small investors.
Why Is BEML’s Stock Rising?
- Board Meeting (July 21): The company’s board will discuss the share split proposal.
- Trading Window Closed: The trading window has been shut from July 1 to 48 hours after the financial results, to prevent insider trading.
- Price Movement: The stock gained 2.28% today, reaching ₹4,530, although it’s still down 10% from last year’s levels.
The buzz around the board meeting has sparked renewed investor interest in this defence gem.
Company’s Future Growth Plans
BEML has set ambitious goals to expand margins and strengthen its defence and metro businesses.
| Sector | Contribution | Future Plans |
|---|---|---|
| Defence | 27% (record high) | Targeting ₹14,000 crore new orders in FY26 |
| Rail & Metro | — | Focus on UTO (Unattended Train Operation) technology and a new ₹230–240 crore plant in Bengaluru |
The company aims to increase its EBITDA margin from 13.2% to 14.5–14.7% in the short term and reach 20% within 4–5 years — a strong indicator of long-term profitability.
Strong Financial Performance
- Revenue (Q4 FY25): ₹1,653 crore — up 9% YoY and a massive 89% QoQ jump.
- Profit (Q4 FY25): ₹288 crore — up 12% YoY and a staggering 1,100% QoQ growth.
- 3-Year CAGR: Sales dipped by 2%, but profit grew at 32% annually, showcasing strong operational efficiency.
These results show that BEML is on a steady recovery path with growing profitability despite slight sales stagnation.
Key Risks
- Order Book: Currently stands at ₹14,610 crore, but competition in the defence sector is increasing.
- Capex Pressure: The company plans to spend ₹600 crore in FY26, which might temporarily affect cash flow.
Should You Watch or Buy?
If the share split is approved, short-term momentum in the stock price is likely as retail participation increases. However, for long-term investors, it’s crucial to track the progress of defence and metro projects, as these will drive the company’s future earnings.
For now, the best approach might be a “Wait and Watch” strategy — keep an eye on the July 21 board meeting, and watch how the market reacts post-announcement.
With a strong order book, growing profitability, and defence sector tailwinds, BEML Limited remains one of the most promising government-backed defence stocks in India.
