State-run BEML Ltd (formerly Bharat Earth Movers Ltd) announced on Monday that its Board has approved a stock split in the ratio of 1:2. This means each existing equity share will be split into two, effectively doubling the number of shares held by investors without altering the overall value of their investment.
In an exchange filing, the company said, “The Board of Directors of BEML Ltd, in its 414th Board Meeting held on July 21, 2025, has inter alia approved the sub-division/split of 1 (one) equity share of face value Rs 10 each fully paid up into 2 (two) equity shares of face value Rs 5 each fully paid up, subject to shareholders’ approval (details enclosed at Annexure-I).”
The company also stated that the record date for the stock split will be announced after shareholder approval is obtained.
What does this mean for shareholders?
For shareholders, a 1:2 stock split means that for every one share they currently hold, they will receive two shares after the split. However, the total value of their investment remains unchanged, as the price of each share will be adjusted proportionally.
For example, if a shareholder owns 100 shares of BEML priced at Rs 100 each (total value Rs 10,000), after the split, they will hold 200 shares priced at Rs 50 each. The total holding value still remains Rs 10,000.
BEML was last seen trading 0.59 per cent lower at Rs 4,375.85. On technical setup, the scrip traded lower than the 5-day simple moving average (SMA) but higher than 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 47.68. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company’s stock has a price-to-earnings (P/E) ratio of 62.20 against a price-to-book (P/B) value of 7.16. Earnings per share (EPS) stood at 70.42 with a return on equity (RoE) of 11.52. According to Trendlyne data, BEML has a one-year beta of 1.5, indicating high volatility.
Separately, the PSU last week informed it has secured two separate export orders with a combined value of $6.23 million. One order is from the Commonwealth of Independent States (CIS) region for the supply of heavy-duty bulldozers. The second is a maiden order from Uzbekistan for the supply of a high-performance motor grader.
BEML, a public sector undertaking under the Ministry of Defence, operates in strategic sectors such as defence, railways, mining, power and construction. As of June 2025, the government held a 53.86 per cent stake in the company.
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