Sunil Singhania makes a fresh entry in this defence stock

One such investor is Sunil Singhania, whose investment moves and portfolio choices attract considerable attention. Sunil Singhania is the founder of Abakkus Asset Manager, an investment management company. He has a track record of over two decades in equity markets. He played a significant role in building Reliance-Nippon MF into one of India's largest asset management companies (AMCs). Sunil Singhania has picked up a stake in defence stock Bharat Earth Movers.

According to the latest shareholding pattern for Sept 2026, investor Sunil Singhania now holds a 1.1% stake in the company. His holding is now valued at ₹1,769 million (m). He held no stake in the company in the prior quarters. While the reasons for the hike remain unclear, a few points may explain the decision. Q1 FY27 has been a big improvement for BEML and the best first quarter the company has had in the last decade or so, with top-line growth of 29%.

This growth was led by a tremendous turnaround in the Rail and Metro segment, which grew by 178%. It was the first time that BEML hit a positive EBITDA ever and the overall loss has gone down by almost 50%. Improving financials could be one reason Sunil Singhania picked a stake in the company. The company has a strong order book of more than ₹16000 crore. According to the management, BEML is looking at an opportunity size of ₹35000 crore to ₹40000 crore, mainly led by the Metro and Rail.

In the defence and mining space, BEML has L1 value of around ₹900 crore worth of tenders. The company also has a healthy export order book currently at around US$115 million and the management is optimistic it should end the year with an export order book of around US$200 million. These may be some of the reasons Sunil Singhania picked a stake in the stock. BEML’s future performance will depend on its ability to convert its sizeable order book into timely execution, revenue growth and sustainable profitability.

The sharp improvement in the Rail and Metro segment is encouraging, but the company must show it can maintain this momentum in subsequent quarters. Progress in defence, mining and exports could provide additional growth opportunities, while new orders may strengthen revenue visibility. However, tender conversions, project delays, working-capital requirements and execution costs remain important factors to monitor.

In the past week, the BEML stock is up nearly 3%. However, in the last month, the share price has changed very little. In the past year, the share price has lost 5%. The stock touched its 52-week high of ₹2,275.75 on 24 October 2025 and its 52-week low of ₹1,355 on 30 March 2026. BEML Ltd is a government-owned engineering and manufacturing company established in May 1964. Headquartered in Bengaluru, it operates under the Ministry of Defence, with the Government of India holding a 54.03% stake.

The company manufactures a wide range of products across three business segments: Defence and Aerospace, Mining and Construction, and Rail and Metro. Its products include military vehicles, missile launchers, bulldozers, excavators, mining dump trucks, railway coaches, metro cars and trainsets. BEML has manufacturing facilities in Bengaluru, Kolar Gold Fields, Mysuru and Palakkad. This article is syndicated from Equitymaster.com