BEML stock split news: Here's what investors need to know

Business Standard

21-07-2025

BEML share price today: Public sector company, Bharat Earth Movers Ltd. (BEML) disclosed in its recent exchange filing on Monday, July 21, 2025, that the board of directors has greenlit the proposal for a stock split in the ratio of 1:2.
On Monday, BEML shares closed the trading session at ₹4,372, down by 0.67 per cent on the National Stock Exchange.
"The record date for the purpose of above sub-division/ split of Equity Shares shall be decided after obtaining approval for sub-division/ split from the shareholders and will be intimated in due course," the exchange filing read.
What this means for investors?
BEML's board approval for a 1:2 stock split means that each existing equity share of face value ₹10 (fully paid up) will be sub-divided into two equity shares of face value ₹5 each (fully paid up).
A stock split increases the number of outstanding shares in the market without adjusting the value of an investor's total holdings. While this reduces the price of each equity share, the overall market capitalisation of the company stays the same.
The company mentioned in its exchange filing that the move is aimed at complying with the capital restructuring guidelines of the Department of Investment and Public Asset Management (DIPAM). This stock split will also make the stock more accessible for small investors and improve the overall liquidity of the company shares in the market.
BEML share price
So far this calendar year, BEML shares have witnessed a single-digit rise of 8 per cent on the BSE. However, in the last 3-month period, the shares of the defence company have experienced a surge of 38 per cent.
The defence stock is trading above its 52-week low of ₹2,350, touched earlier this year. The current market capitalisation of the company stands at ₹18,206.98 crore.
BEML financials
BEML reported a double digit surge of 12 per cent in its profit after tax (PAT) to ₹287.5 crore in the fourth quarter of the financial year 2024-2025 (Q4FY25), from ₹256.80 crore reported in the corresponding quarter of the previous fiscal year. Revenue from operations stood at ₹1,652.53 crore in Q4FY25, up by 9.18 per cent from ₹1,513.65 crore reported in Q4FY24.
As per Elara Capital, the robust performance trajectory might take a breather in the coming quarter due to sluggish execution of orders. "BEML revenue may rise 6 per cent due to the slowdown in railway orders execution," the brokerage firm stated in its report.