Defence Stocks: Shares of Bharat Earth Movers Limited (BEML) rallied intraday on Wednesday, July 24, rising rapidly as much as 2.68 per cent in early trade after the company secured a fresh order worth Rs 293.82 crore from the Ministry of Defence (MoD) for high mobility vehicles (HMV) 6X6.

At 9:21 am, the stock was quoting at Rs 4,401.05 on the BSE, up Rs 114.95, or 2.68 per cent. The order is seen as a positive development for BEML’s order book, which has been gaining momentum through sustained defence-related deals.

Why is the stock rallying

Board clears 1:2 stock split

In a key corporate action, the company’s board approved a sub-division of shares in its July 21 meeting. As per the resolution, each equity share of face value Rs 10 will be split into two shares of face value Rs 5. This move is aimed at increasing liquidity and retail participation, and may further support stock momentum in the near term.

Defence wins continue

This is the second major order for BEML this month. On July 18, the company bagged another order from the MoD’s Engineer-in-Chief (E-in-C) for the supply of bulldozers, worth approximately Rs 185.65 crore. With this, BEML’s cumulative defence order inflow this month has surpassed Rs 475 crore.

Market outlook

The stock touched its 52-week high of Rs 4,874.85 on June 23, 2025, and a 52-week low of Rs 2,346.35 on March 3, 2025. At current levels, BEML is trading nearly 9.7 per cent below its peak and 87.5 per cent above its 52-week low, reflecting strong medium-term price action.

The company’s current market capitalisation stands at Rs 18,327.95 crore.

What should investors do?

With steady defence orders, an upcoming stock split, and strong sectoral tailwinds, analysts believe BEML remains well-placed. Investors may watch upcoming earnings and delivery milestones for further cues.