In a significant move for investors, BEML Ltd., a key public sector undertaking in the defence sector, has announced its first-ever stock split. This development, coupled with reports that the company is on the verge of being upgraded from a 'Miniratna' to a 'Navratna' status, has put the defence PSU firmly in the spotlight.The company has been a solid performer for long-term investors, with its stock delivering impressive returns over the past several years. Let's take a closer look at what these new developments mean for the company and its shareholders.First-Ever Stock SplitTo make its shares more affordable for retail investors and increase trading volume, BEML's board has approved a 1:2 stock split. This means every existing share with a face value of₹10 will be divided into two shares, each with a new face value of₹5.The record date for this split has been set asNovember 3, 2025. If you are a shareholder of BEML on this date, you will be eligible for the split. In simple terms, for every one share you hold, you will receive two. While the number of shares will double, the total value of your investment will remain the same as the market price of the share will adjust accordingly.A Track Record of Strong ReturnsBEML's stock has a history of rewarding its investors. Looking back at its performance, the share price has seen substantial growth. For instance, the stock surged from₹1,643.10 in January 2021 to₹4,207.50 in 2025, delivering a return of over 156% in that period. An investment of₹1 lakh in the company back in 2021 would have grown to more than₹2.56 lakh today.A Diversified Defence PowerhouseBEML operates as a 'Schedule 'A' Company' under the Ministry of Defence and has a crucial presence in sectors like defence, rail, power, and mining. The company is structured around three main business areas:Defence & Aerospace: It is a key supplier of ground support vehicles for India’s critical missile and radar programs.Mining & Construction: The company is a leading manufacturer of heavy earthmoving equipment.Rail & Metro: BEML is a major manufacturer of metro cars and has also started producing driverless metro trains.The company's future looks solid, with a hefty order book of around₹140 billion. A recent major win was a₹30 billion order from Chennai Metro for 210 metro cars.Potential 'Navratna' UpgradeAdding to the positive sentiment is the strong possibility of BEML being elevated from a 'Miniratna' to a 'Navratna' company. This is a significant step, as 'Navratna' status grants greater operational and financial autonomy. A Navratna company can invest up to₹1,000 crore on a single project without needing prior government approval, allowing for quicker decision-making and expansion. Reports indicate that the proposal is in the final stages with the Finance Ministry, and an official announcement could be made soon.This potential upgrade, along with a strong order book and the upcoming stock split, creates a compelling outlook for BEML.
Around the web
