Not IRFC, Or RVNL, But This Bengaluru-Based Railway PSU Stock Gives 15,166% Returns; Buy? 2026 Target

The majority of railway stocks have surged this week after Indian Railway hiked train fares on certain journeys. Among them, one railway PSU stock is nearing its Rs 2,000 pivotal mark. This railway stock had witnessed broader consolidation in most sessions of 2025; however, a positive biasness has appeared on its moving stick, indicating fresh new rallies and highs. The majority of brokerages have recommended on this railway stock. Who is it?

This specific railway stock is neither IRFC nor RVNL, the two largest railway companies in India in terms of market value. Instead, it's a railway stock backed by the government, which has diverse businesses and is just a midcap. Drum roll! This railway stock is called BEML Ltd., which is among the leading railway and defence companies of India.

BEML Ltd Share Price:

At the time of writing, BEML traded at Rs 1890.95 apiece on BSE, up by Rs 23.30 or 1.3% with market cap of Rs 15,749.53 crore. In the early deals of December 26, BEML shares crossed Rs 1,900 mark and rose by 3.2% with an intraday high of Rs 1926.90 apiece before investors cashed in their gains.

Over the past five sessions, BEML stock has surged by more than Rs 202 or 12%. YTD, however, the stock is down 15%. But because of the last gains, BEML has recovered some earlier losses.

In the longer run, BEML stock soared by nearly 285% in its 5-year performance. But did you know, BEML stock has given a mind-boggling 15,166.13% all-time returns. Once upon a time, BEML stock was just at Rs 12.40 on January 1, 1999.

This all-time performance is better than IRFC and RVNL whose all-time gains are 432.78% and 1,853.42%. It needs to be noted that BEML stock price have adjusted to a stock split in 2025, while IRFC and RVNL only started trading in 2019 on BSE and NSE.

Why BUY BEML Stock?

BEML is a top pick of Elara Securities' Harshit Kapadia in the railway basket. This is because of BEML's strong strong convergence of rail and metro opportunities and a strong pipeline over the next three years. The major reason behind his bullish stance on BEML is the company's order book of Rs 17,000 crore, from which, Rs 11,000 crore is related to railway and metro projects.

In his note, Kapadia also said, "We lower our FY2 6E EPS by 2%, by 6% for FY27E and 5% for FY28E on account of delay in execution of the VB sleeper and Mumbai metro orders . Hence, we lower our TP to Rs 2,700 from Rs 2,780 on 3 7x ( unchanged ) September FY2 7E P/E. However, w e retain Buy, due to strong order visibility in R&M and defence, scaling up export s opportunity in high -end mining equipment , providing scope for margin improvement and focus on new areas , such as Advanced Medium Combat Aircraft (AMCA ), maritime trains and engines."

Meanwhile, at the nearest, BEML stock is nearing PL Capital's technical short term target of Rs 2,100. According to K V Shiju, Senior Manager - Technical Research at PL Capital Group - Prabhudas Lilladher, BEML stock after having witnessed a decent correction has shown signs of bottoming out near the 1650 zone and has indicated a pullback with currently having positive candle formation on the daily chart to improve the bias.

In his note dated December 22, Shiju added, with the chart technically looking good and at an attractive level. He added, "we suggest to buy the stock for an upside potential target of 2100 level keeping the stop loss of 1620 level."

BEML Ltd Corporate Action:

Among the latest rewards, BEML has carried out one stock split and paid three dividends in 2025.

Stock Split: The last big corporate action was a stock split of 1:2 ratio with ex-date on November 3, 2025. The face value of BEML shares split to Rs 5 each from earlier Rs 10 each.

Dividends: BEML delivered a total of Rs 21.20 per share dividend for FY25. The dividends were divided by final dividend of Rs 1.20 per share in September 2025, following interim dividend of Rs 15 and Rs 5 per share in May and February this year. Overall, as per Trendlyne data, since September 2003, the company distributed at least 35 dividends.

About BEML Ltd:

BEML Limited, formerly Bharat Earth Movers Limited, is an Indian public sector undertaking which manufactures a variety of heavy equipment, such as that used for earth moving, railways, transport and mining. It is headquartered in Bengaluru, Karnataka. BEML is Asia's second-largest manufacturer of earth moving equipment, as per Wikipedia.

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