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

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BEML share price: Shares of BEML Limited ended 1.23% lower on Friday, after seeing a 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 a 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 an 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 improved execution are likely to further support the next leg of growth, ICICI Securities highlighted in its report.
ICICI Securities maintained a ‘Buy’ rating on 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, driven by 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 BSE filing. The expenses during the quarter rose to ₹1,150.39 crore over ₹795.83 crore in the year-ago period.
The PSU stock closed 1.23% lower at ₹2098.20 per share on BSE with a market capitalisation of ₹17,475.70 crore on Friday, November 13. The stock touched its 52-week high level of ₹2,236.20 per share on November 11, 2026.
Its share price has surged 7.64% over the last one week, 5.58% over the last two weeks, 6.12% in one month, and around 13.52% in 2026 so far.
BEML is a diversified engineering PSU which operates across rail and metro, defence and aerospace, and mining and construction. Initially operating as a conventional mining and rail equipment manufacturer, the company now produces Vande Bharat Sleeper, metro coaches, and more.
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