Split Alert! BEML’s Share Shuffle Could Reset the Investment Game

Image Source: Indian Masterminds

Stateowned BEML Ltd, India's leading heavy equipment manufacturing as well as defense system company, will declare its firstever stock split. The board of directors will sit today, July 21, 2025, to sanction the division of equity shares under Section 61(1)(d) of the Companies Act, 2013.

What It Means for Investors:

The fresh demerger will divide 1 existing share into 2, which can reduce the face value from Rs 10 to Rs 5
An effective stock split will expand the total number of outstanding shares, which will enhance liquidity and provide shares to more individual investors
BEML shares have risen more than 720% in the last five years, an indication of high investor confidence

Current Fiscal Performance:

Q4 FY25 net profit was 12% higher YoY at Rs 287.5 crore
Topline increased 9.1% to Rs 1,652.5 crore, driven by robust performance in all segments
EBITDA rose by 13.9% to Rs 422.6 crore with operating margins expanding to 25.57%

Strategic Momentum:

BEML received two export orders worth $6.23 million: one from the CIS market for bulldozers and another from Uzbekistan for motor graders
The firm declared a second interim dividend of Rs 15 per share in May; final dividend subject to approval

Market Reaction: