BEML shares rise on defence MoU with Kineco; stock climbs 91% above 52-week low

Shares of state-run BEML Ltd climbed in Friday’s trade after the public sector undertaking announced a partnership with Kineco Ltd for manufacturing defence and aerospace applications.

Shares of BEML Ltd rose as much as 1.5 per cent to hit a day’s high of Rs 4,490.80 on the BSE, up from the previous close of Rs 4,423.05. At the latest check, the stock was trading 1.35 per cent higher at Rs 4,482.80, taking the company’s market capitalisation to Rs 18,660 crore. The stock remains 8 per cent below its 52-week high of Rs 4,874.85, while comfortably above 91 per cent of its 52-week low of Rs 2,346.35.

In a filing with the stock exchanges on Thursday evening, the company disclosed that "BEML Limited and Kineco Limited have entered into a Memorandum of Understanding (MoU), to collaborate in the field of advanced composite manufacturing for aerospace and Defence applications."

Earlier, on September 26, BEML said that it had entered into a tripartite Memorandum of Understanding (MoU) in Pune. This agreement was signed with Bharat Forge Limited and Data Patterns (India) Limited to jointly support the Advanced Medium Combat Aircraft (AMCA) programme. The partnership also aims to participate in the Expression of Interest (EoI) floated by the Aeronautical Development Agency (ADA).

On the technical front, the stock exhibited signs of a strong uptrend, trading above its 50-day Simple Moving Average (SMA) of Rs 4,160.6 and its 200-day SMA of Rs 3,728.9. The stock's one-year beta stands at 1.5, indicating very high volatility, Trendlyne data suggests.

The Relative Strength Index (RSI) was in the mid-range at 58. However, the Money Flow Index (MFI) was at 74, suggesting the stock was in the overbought zone.