Among the much-awaited stock splits in November is that of a top railway stock which is currently at around Rs 4,400 per share levels on BSE and NSE. This railway stock will split in the ratio of 1:2 and will be in focus next week. To be eligible, investors will need to hold the railway stock as of record date. Who is it? Drum Roll! Its neither IRFC or RVNL who are two leading railway companies. Instead its a midcap but also a PSU, BEML Ltd.
BEML Ltd Share Price:
After market hours of October 31st, BEML share price closed the month at Rs 4399.90 apiece on BSE, down by 0.91% with a market cap of Rs 18,323.16 crore. Despite the latest correction, BEML is near its 52-week high of Rs 4,874.85 apiece and is higher by 87.5% from its 52-week low of Rs 2,346.35 apiece.
BEML's price-to-equity ratio is around 61.02x, and return on equity is stable at 11.76%. In the past six months, BEML gained by a whopping 37.40% on BSE, and its year-to-date performance is up by nearly 7%. In 5-years span, BEML has given nearly 750% returns.
BEML Ltd Stock Split:
BEML is splitting its shares for the first time ever. The ratio of stock split is fixed at 1:2, which means that 1 existing BEML Ltd stock price will be sub-divided to two small shares. This will reduce the face value of the stock from Rs 10 each to Rs 5 each.
It needs to be noted that the number of shares in investors portfolio will double but the intrinsic value will remain the same. Here's an example:
Let's suppose, an investor holds 100 shares of BEML as of record date at Rs 4,300 per share. The face value this time is Rs 10 each.
But after record date, the number of shares will be split to 200 shares (100 x 1/2), and the share price value will reduce to Rs 2,150 per share. The face trims to Rs 5 each.
100 shares x Rs 4,300 = Rs 4,30,000
200 shares x Rs 2,150 = Rs 4,30,000
The company has fixed Monday, November 3, 2025 as the record date to determine the eligibility of shareholders for 1:2 stock split.
One of the main reason to carry stock split is to improve liquidity. As per Angel One blog, a stock split can strategically position the company for future growth. By making shares more accessible, the company can potentially attract a broader investor base, fostering increased demand and contributing to the company's expansion plans.
BEML Share Price Recommendation:
The consensus recommendation from 2 analysts for BEML Ltd. is BUY, as per Trendlyne data. BEML is fairly valued at current PE, but undervalued on future earnings estimates. Also, BEML's EPS is expected to grow by 38.0% in FY26. The average target price of Rs 4531.50 apiece for 12-months period.
About BEML Ltd:
BEML Limited, a 'Schedule 'A' Company under Ministry of Defence, Govt. Of India, plays a pivotal role and serves India's core sectors like Defence, Aerospace, Rail, Metro, Power, Mining and Infrastructure.
Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.
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