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Harshit Kapadia, Vice President covering industrials, defence, railways and consumer sectors at Elara Securities, said multiple large projects are set to come together for BEML in 2026–27 (FY27), improving earnings visibility.
By Alpha Desk December 23, 2025, 11:31:00 AM IST (Published)
Elara Securities’ Harshit Kapadia said BEML is his top pick in the railway space, backed by a strong convergence of rail and metro opportunities and a robust execution pipeline over the next three years.
The company’s nearly ₹17,000 crore order book—of which more than ₹11,000 crore is linked to railway and metro projects—is the key reason for his bullish view on BEML.
“Bengaluru Metro, Chennai Metro, LHB (Linke-Hofmann-Busch) coaches, plus delivery of Vande Bharat—all is coming together for this company in 2026-27 (FY27),” he said, adding that he sees a target price of ₹2,700 for the BEML stock, implying about 50% upside from current levels.
Kapadia's next big bet in the space is RITES Limited.
Beyond individual stock picks, Kapadia stressed that the broader performance of railway stocks hinges on capital expenditure support from the upcoming Union Budget, as the sector’s funding is almost entirely budget-driven. “If the budget increases from ₹2.65 lakh crore to ₹3 lakh crore, which was the vision the Indian Railway was giving, then probably we will be moving towards the ₹3 lakh crore number,” he said, stating that a higher allocation would act as a catalyst across engineering, procurement and construction firms as well as equipment manufacturers.
Also Read: BEML’s Shantanu Roy reaffirms 20% revenue growth target, sees supply chain issues easing
He also pointed to recent cabinet approvals of nearly ₹25,000 crore for connectivity projects covering more than 3,600 villages, identifying public sector undertakings as the main beneficiaries. “Largely when we talk about connectivity, the largest beneficiary has always been Rail Vikas Nigam Limited (RVNL), followed by IRCON (IRCON) and then RITES in terms of distribution of projects,” Kapadia said, outlining a historical split of roughly 60% for RVNL, 30% for IRCON and 10% for RITES.
Also Read: Indian Railways fare hike from Dec 26: Check how much more passengers will pay for tickets
On the passenger fare hike announced by Indian Railways, Kapadia said the move is aimed largely at long-distance travel and could add about ₹600 crore in revenue in 2025-26 (FY26). “The major beneficiary would definitely be Indian Railway Catering and Tourism Corporation (IRCTC) on the Indian Railway side,” he said, adding that the hike fits into a broader push to raise fares and lower subsidies, with the railways’ cost-to-income ratio currently above 97%.
However, he said market reaction has been muted, with IRCTC’s stock showing little movement, reflecting investor scepticism rooted in past fare hikes reversals. “People would be basically looking whether this is going to swiftly go through or pass through or there could be some hindrance,” Kapadia said.
For the entire interview, watch the accompanying video
