BEML climbs 8% on Rs 866-cr deal to build two high-speed train sets

Under the project, BEML will design, manufacture and commission two high-speed train sets with a test speed of 280 kmph

BEML shares soared 7.7 per cent on Wednesday and logged an intraday high of Rs 4,009.25 per share after the company secured a contract from Integral Coach Factory to design and manufacture two 'Made in India' high-speed trains.

At around 11:06 AM, BEML share price was up 4.76 per cent at Rs 3,896.65 per share on the BSE. In comparison, the BSE Sensex was down 0.11 per cent at 81,728.12, around the same time. 

"BEML Limited has been awarded a contract for the designing, manufacturing, and commissioning of two high-speed train sets, each comprising 8 cars by Integral Coach Factory (ICF), Chennai," the company's exchange filing stated. 

The total contract value of the project is Rs 866.87 crore, with the price of each car pegged at Rs 27.86 crore. The contract cost includes design cost, one-time development cost, non-recurring charges, one-time costs towards jigs, fixtures, tooling and testing facilities, which will be utilised for all future high-speed rail projects in India. 

Under the project, BEML will manufacture the first indigenously designed train sets with a test speed of 280 kmph. The manufacturing will be carried out at BEML's Bengaluru rail coach complex and is slated to be delivered by the end of 2026.

Prior to this, BEML had designed and manufactured India’s first Vande Bharat Sleeper train set which was flagged off by railways minister, Ashwini Vaishnaw in September this year. 

The Vande Bharat Sleeper train set is equipped with a range of world-class features, including an integrated reading light with USB charging provision, public announcement system, and visual information systems, inside display panels and security cameras, modular pantries, and special berths and toilets for differently-abled passengers. Additionally, the first AC car offers showers with hot water, enhancing passenger comfort.

BEML is a multi-technology company operating under the Ministry of Defence. It operates in three verticals--Defence and Aerospace, Mining and Construction, and Rail and Metro--and it has manufacturing facilities located at Bangalore, Kolar Gold Fields (KGF), Mysore and Palakkad. 

The company has been manufacturing earthmoving, transportation, and construction equipment for over six decades.

In the past one year, BEML shares have gained 334 per cent, compared to the BSE Sensex's rise of 23 per cent during the same period.