This Stock Surges 13% as Motilal Oswal MF Buys Stake In It

Shares of BEML Ltd (NSE:BEML)., the state-run engineering giant, will be in the spotlight on Friday, March 28, after Motilal Oswal (NSE:MOFS) Financial Mutual Fund acquired a stake in the company via block deals on Thursday, March 27.

According to exchange data, Motilal Oswal MF purchased 2.66 lakh shares of BEML at an average price of INR 3,048.3 apiece. The stock witnessed strong buying interest toward the end of Thursday’s session, ultimately closing 13.7% higher at INR 3,140.4 per share.

Mutual Fund Interest in BEML Grows

Before this transaction, Motilal Oswal MF did not hold over a 1% stake in BEML as of the December quarter, which could explain why it was absent from the company’s reported shareholding pattern.

Other notable mutual funds holding a stake in BEML include:

- Invesco

- Kotak Mahindra Bank (NSE:KTKM)

- HDFC Small Cap Fund

- ICICI Prudential (LON:PRU)

As per the December quarter filings, these institutions collectively held between 1.83% to 6.15% of the company’s shares. The growing interest from institutional investors reflects confidence in BEML’s growth trajectory.

INR 405 Crore Bengaluru Metro Contract Secured

Further boosting investor sentiment, BEML announced a INR 405 crore contract from Bengaluru Metro Rail Corporation Ltd. on Thursday. The contract covers: Design, manufacture, supply, installation, testing, and commissioning of standard gauge metro cars and personnel training and comprehensive maintenance for up to 15 years

Valuation Insights: What Should Investors Do?

With BEML’s recent rally, investors must assess whether the stock remains attractive. According to InvestingPro’s Fair Value tool, BEML’s intrinsic value is pegged at INR 3,281.3 per share, indicating a 4.5% upside potential from the current market price of INR 3,140.4.

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Investors looking for precision-driven valuation insights can use InvestingPro, which leverages multiple financial models to determine whether a stock is overvalued or undervalued.

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