BEML Ltd. on Tuesday received a contract for the design, manufacturing, and commissioning of two high-speed trainsets from Integral Coach Factory, Chennai, to be deployed on the ambitious Mumbai-Ahmedabad bullet train corridor.
The two high-speed trains will comprise eight cars each, priced at Rs 28 crore. The total deal value of Rs 867 crore includes design cost, one-time development cost, non-recurring charges, one-time cost towards Jigs, fixtures, tooling, and testing facilities, which will be utilised for all future high-speed projects in India, according to an exchange filing.
The trainsets will be built at BEML's Bengaluru rail coach complex and are scheduled for delivery by the end of 2026, the filing said.
The trains, designed with a fully air-conditioned chair car configuration, will provide modern passenger amenities, including reclining and rotatable seats, special accommodations for passengers with limited mobility, and onboard infotainment systems, BEML said.
"This project marks a significant milestone in India's high-speed rail journey and will see the first indigenously designed and manufactured trainsets with a test speed of 280 kmph," the company said, adding the contract further strengthens BEML's position as a leader in rolling stock manufacturing.
BEML operates in three verticals: defence and aerospace, mining and construction, and rail and metro, and has state-of-the-art manufacturing facilities located at Bengaluru, Kolar Gold Fields, Mysore, and Palakkad, along with R&D infrastructure and a nationwide network of sales and services.
The ICF, which manufactures trains running on the popular Mumbai suburban network, issued a tender to build two state-of-the-art high-speed chaircar trains last month.
These trains will be part of the ambitious 508-km Mumbai-Ahmedabad bullet train corridor, estimated to cost Rs 1.1 lakh crore.
Initially, the corridor was reportedly planned to feature Japanese Shinkansen E5 trains, capable of reaching up to 350 km per hour. However, due to the high prices quoted by Japanese firms, the Indian government opted to manufacture these high-speed trains domestically.
BEML Share Price Movement
BEML share price advanced 2% intraday to Rs 3,793 apiece. The scrip was trading 0.2% higher at Rs 3,735.7 by noon.
BEML share price advanced 2% intraday to Rs 3,793 apiece. The scrip was trading 0.2% higher at Rs 3,735.7 by noon.
Share price of BEML advanced 2% intraday to Rs 3,793 apiece. The stock was trading 0.2% higher at Rs 3,735.7 by noon. The benchmark NSE Nifty 50 was down 0.22%.
The stock has risen 62% in the last 12 months and 32% on a year-to-date basis. The relative strength index was at 66.
Four out of the five analysts tracking BEML have a 'buy' rating on the stock and one has a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 19.2%.
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