BEML stock weathers CMD suspension news 

R. Y. Narayanan Updated - June 11, 2012 at 02:52 PM.

Though the shares of public sector multi-product company BEML dipped to their 52-week low today following news about the suspension of its CMD, they made partial recovery about an hour before the close of trading.

The prolonged negative news surrounding the company in the wake of Tatra truck controversy appears to have made the stock digest the suspension news as well without much of a shock.

The prolonged news had led the company to lose about 50 per cent of value in the past three months.

The stock, which had hit its 52-week high of Rs 704.90 on the NSE on March 16 this year, has been on a continuous decline ever since the controversy broke out and the BEML CMD, Mr V.R.S. Natarajan, came under CBI scrutiny.

The news of suspension of Mr Natarajan today did not in itself make much of a dent, though technically, the stock hit its 52-week low, as the stock price seems to have factored in this possible development.

On the NSE, the stock hit its 52-week low of Rs 372 but recovered to Rs 376.75, a loss of Rs 7.10 with a trading volume of 7.28 lakh shares. The stock had closed at Rs 383.85 on Friday. 

On the BSE, the shares slipped to Rs 371.75, its 52-week low. But the stock made a modest recovery to Rs 378.50, a loss of Rs 6.90.

Published on June 11, 2012 09:17