BEML share price falls after hitting 52-week high: ICICI Direct sees 39% upside in defence PSU stock—should you buy?

Résumé détaillé

BEML shares fell 1.23% on Friday but gained 7.64% for the week. ICICI Securities maintained a Buy rating and set a target price of ₹2,765, citing a strong rail and metro order pipeline and growth prospects. BEML’s Q2FY27 net profit declined 30.5% as expenses rose.

BEML share price: Shares of BEML Limited, ended 1.23% lower on Friday, after seeing sharp surge over the past five trading sessions. The defence PSU reported a 30.5% annual surge in its consolidated net profit during the first quarter of financial year 2026-27.

Despite Friday’s decline, BEML share price ended the week with 7.64% gain. The PSU’s surge in revenue and profit was supported by improved execution, however, higher cost of revenues weighed on profitability, according to ICICI Securities report, which sees up to 39% upside potential in BEML share price.

BEML is transitioning towards a rail and metro-led growth profile. Hence its growth is likely to be supported by a strong order pipeline across metro rolling stock, commuter rail and other railway programmes.

“BEML reported H1FY27 order inflows of ~ ₹7,500 crore and an order book of ₹21,388 crore as of September 2026, providing multi-year revenue visibility, with ₹17,967 crore executable beyond FY27. Management is targeting FY27 order inflows of ₹20,000 crore, with Rail & Metro expected to contribute around 50%,” read the brokerage report.

Gradual stabilisation of the domestic supply chain and improving execution are likely to further support the next leg of growth, highlighted ICICI Securities in its report.

ICICI Securities maintained a ‘Buy’ rating for the stock with a target price of ₹2765 per share on BSE. “We expect Revenue and PAT to grow at ~26% and ~102% CAGR over FY26-FY28E.We recommend BUY on BEML with a target price of ₹2765 per share (based on 40 x FY28E EPS),” read the brokerage report.

The diversified engineering PSU reported a 30.5% decline in consolidated net profit to ₹33.34 crore for Q2FY27 on the back of higher expenses. Its net profit stood at ₹48.03 crore in the year-ago period. Its net revenue from operations increased to ₹1,191.61 crore compared to ₹839.09 crore in the year-ago period, BEML said in a filing to BSE.

The PSU stock closed 1.23% lower at ₹2098.20 per share on BSE with a market…

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