BEML, HUDCO, Rail Vikas Nigam, BHEL and RITES were among major gainers in today's session. BEML stock jumped as the public sector major reported strong set of numbers. Majority of PSU stocks have recovered recently from their yearly lows and we can expect further momentum in these counters. Additionally, majority of these stocks have created a support near their recent lows. Traders can expect a bounce from recent lows, even if markets face a sell-off.

BEML Rides High on Order Momentum and Market Euphoria

BEML Ltd reported a 12% YoY surge in Q4 FY25 net profit to Rs 287.55 crore, with revenue climbing 9% YoY to Rs 1,652.5 crore. Executing orders worth Rs 1,564 crore in Q4 alone, the company currently holds an order book of Rs 1,035 crore. Notably, management has projected a robust expansion—guiding for a Rs 22,000 crore order book by FY26-end with expected 20% revenue growth and 14.5% EBITDA margins.

Investor reaction was overwhelmingly positive, with shares surging 17.89% intraday on May 26, touching Rs 4,380.25. Over two sessions, the stock gained over 20%.

Analyst Recommendations:

Ravi Singh (Religare Broking): Maintains a bullish stance with a target of Rs 4,600 and a stop loss at Rs 4,000.

A.R. Ramachandran: Advises profit-booking citing overbought signals and warns of potential downside to Rs 2,935 if Rs 3,742 support breaks.

Jigar S. Patel (Anand Rathi): Suggests a short-term range between Rs 4,000 and Rs 4,500.

HUDCO Holds Ground Amid Urban Infrastructure Optimism

HUDCO's stock climbed 4.61% on May 26 to close at Rs 238.26, marking an 8.18% gain over the past month. The stock maintains modest valuation metrics—P/E of 17.61 and P/B of 2.54.

Chairman & MD Sanjay Kulshrestha’s leadership continues to inspire confidence. Technical levels suggest support in the Rs 171–201 range and resistance between Rs 249–304. No updated institutional ratings were noted, but the company stands to benefit from growing urban housing and infrastructure demand.

RVNL Faces Execution Headwinds Despite Mammoth Order Book

Rail Vikas Nigam Ltd. reported a 4% decline in Q4 net profit to Rs 478.4 crore, with revenue also slipping by 4% to Rs 6,426.9 crore. EBITDA margins contracted to 6.7% amid operational inefficiencies.

The firm commands an impressive Rs 97,000 crore order book, with revenue growth of 10–11% guided for FY26. However, execution delays and funding issues plague momentum.

Analyst Commentary:

Antique Stock Broking issued a "Sell" rating, flagging 46% downside risk due to weak execution and delayed inflows from the Railways Ministry.

BHEL Shines on Order Wins, Dimmed by Valuation Concerns

BHEL posted a 3% YoY rise in Q4 net profit to Rs 504.45 crore on revenue of Rs 8,993 crore. For FY25, the company recorded an 89% jump in net profit to Rs 533.9 crore. Orders worth a record Rs 92,534 crore were booked, including a flagship Rs 11,800 crore thermal power project.

However, analysts remain cautious:

Kotak Institutional Equities: Issued a “Sell” call with a target of Rs 115, pointing to high valuation at 35x FY26 P/E and execution bottlenecks.

CLSA: Maintains a “Reduce” call but raised the target to Rs 198 from Rs 166, citing margin pressures despite strong order intake.

RITES Seeks Stability Amid Project Turbulence

After mutually terminating a contract with UP State Bridge Corporation, RITES’ shares fell 3.2% on May 23. Still, the company secured a new contract from Mahanadi Coalfields in April.

Q4 results painted a more optimistic picture: net profit grew 25.8% QoQ to Rs 132.71 crore on revenue of Rs 642.65 crore.

Technical Analysts noted a bullish breakout from an ascending triangle pattern, assigning a short-term target of Rs 325.

IRFC Maintains Momentum with Navratna Upgrade

The Indian Railway Finance Corporation reported a 6% YoY rise in Q4 net profit to Rs 1,717 crore. It raised Rs 13,600 crore in FY25 and has plans to raise between Rs 20,000–30,000 crore in FY26.

With Navratna status granted in April 2025, IRFC is expected to enjoy greater borrowing flexibility and expedited decision-making.

While no fresh analyst ratings were found, long-term sentiment remains favorable, underpinned by a 3-year return of 1,100%.

Key Catalysts

Below is a snapshot of positive catalysts and red flags for each stock: