Highlights:

• BEML approved a ₹1,500 crore investment for a new rail manufacturing plant in Madhya Pradesh.
• Inventory value moderately declined to ₹2,543.37 crores as of 31 December 2025 from ₹2,679.37 crores in 2024.
• Elara Securities Pvt Ltd issued a buy rating on BEML with a target price of ₹2,700.

BEML Ltd (NSE:BEML) saw a notable 7.33% increase in its share price to trade at ₹1,735.90 on 9 February 2026, following the announcement of a significant strategic investment and a positive market outlook from brokerage firms. The company’s Board of Directors approved an estimated investment of approximately ₹1,500 crores for a new Greenfield Rail Manufacturing facility named BRAHMA, to be located at Umariya, near Bhopal in Madhya Pradesh. The project will be funded through long-term debt and is planned for phased completion over the next five years.

Adding to investor optimism, Elara Securities Pvt Ltd issued a buy recommendation on BEML shares, setting a target price of ₹2,700.

Inventory Levels Show Moderate Adjustment

BEML’s inventory as of 31 December 2025 stood at ₹2,543.37 crores, down from ₹2,679.37 crores recorded at the end of 2024. This decrease was mainly due to lower raw materials, components, and stores value, which declined to ₹1,153.14 crores from ₹1,295.36 crores. Work in progress also fell from ₹864.31 crores to ₹807 crores. Conversely, finished goods rose to ₹294.43 crores from ₹179.10 crores, and scrap values slightly increased to ₹4.33 crores from ₹3.83 crores. These changes indicate adjustments in stock levels as BEML prepares for its expansion.

Trade Receivables and Borrowings on the Rise

Trade receivables increased to ₹1,796.34 crores by the end of 2025, up from ₹1,479.84 crores a year earlier, suggesting rising sales or extended credit terms. Borrowings also rose, with cash credit and short-term loans reaching ₹930.83 crores compared to ₹641.63 crores in 2024. This aligns with the company’s plan to finance its new manufacturing project mainly through long-term debt.

Elara Securities Issues Buy Recommendation

In a recent update, Elara Securities Pvt Ltd issued a buy rating on BEML shares, highlighting potential upside and setting a target price of ₹2,700. This recommendation follows the company’s strategic expansion plans and improving financial metrics, contributing to positive investor sentiment.

Net Working Capital Trends and Future Outlook

BEML’s net working capital as of 31 December 2025 decreased slightly to ₹2,764.64 crores from ₹2,829.38 crores in the previous year. The BRAHMA Greenfield rail manufacturing project is expected to enhance BEML’s production capabilities, with phased completion planned over five years. This expansion aims to position the company for future growth in the rail manufacturing sector.

Other Railway Stocks Also Show Gains

On 9 February 2026, other railway sector stocks also experienced positive movements. Railtel Corporation of India Ltd (NSE: RAILTEL) rose 2.25% to ₹331.30, while Rail Vikas Nigam Ltd (NSE: RVNL) increased by 1.00% to ₹317.25, indicating broader positive momentum within the sector.

BEML Ltd’s approval of a ₹1,500 crore investment for a new rail manufacturing facility has been met with a positive market response, with shares rising 7.33% and Elara Securities issuing a buy recommendation targeting ₹2,700. Inventory and trade receivable adjustments reflect operational shifts as the company prepares for this expansion.

FAQ

Q1: What is the purpose of BEML’s ₹1,500 crore investment?
A1: The investment is for establishing a new Greenfield Rail Manufacturing facility called BRAHMA near Bhopal, Madhya Pradesh, to enhance manufacturing capabilities.

Q2: How is BEML funding this project?
A2: The project will be funded primarily through long-term debt.

Q3: What is the target price set by Elara Securities for BEML shares?
A3: Elara Securities Pvt Ltd has issued a buy rating with a target price of ₹2,700 for BEML shares.

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