Metro rail, defence projects may help BEML tide over slowdown blues

The metro and rail segment, which grew 45% in FY19, accounts for half the firm's order book

Shares of BEML, which had corrected by about 30 per cent in the current fiscal till August due to macroeconomic concerns, have rebounded about 15 per cent recently and could see more gains.

Even as concerns on slowdown continue, the management recently affirmed analysts and maintained its FY20 revenue guidance of Rs 4,200 crore. Their confidence stems from expectations of robust execution of India’s metro rail projects to drive the year’s revenues by about 20 per cent over the last fiscal. The metro and rail segment (the company makes metro cars and rail coaches) had seen 45 per cent growth