Shares of BEML Ltd. gained nearly 4% on Thursday after it partnered with SMH Rail Sdn Bhd, Malaysia's largest rolling stock manufacturer.
Both companies aim to bolster their market presence across Malaysia, Southeast Asia, and Africa, focussing on the marketing, supply, and servicing of rail and metro products, according to an exchange filing.
As part of the agreement, BEML and SMH Rail will combine their resources to enhance capabilities in marketing, manufacturing, and maintenance, repair, and overhaul services. The partnership will also involve joint efforts in the design, engineering, and manufacturing of rolling stock tailored to meet specific client requirements. Additionally, both companies will collaborate on sourcing rolling stock aggregates and subsystems and exchange technology to strengthen their market strategies.
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Shares of BEML rose as much as 3.70% to Rs 3,986.20 apiece, the highest level since Aug. 13. It pared gains to trade 2.32% higher at Rs 3,933.40 apiece as of 11:11 a.m. This compares to a 0.39% advance in the NSE Nifty 50 Index.
The stock has risen 88.90% in the last 12 months. Total traded volume so far in the day stood at 1.5 times its 30-day average. The relative strength index was at 42.
Out of five analysts tracking the company, four maintain a 'buy' rating and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.4%.
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