BHARAT EARTH MOVERS LTD (BEML) - PSU

This 54% government owned company has seen a modest financial performance over last twelve months with sales growth of 10% and profits growth of 19%. Despite the somewhat muted financials, the stock outperformed the Sensex by over 160%, over last 12 months. The reason for the optimism is that its main businesses of construction & mining equipment, which is witnessing a huge demand and is, expected to grow at 20-25%. Further, the company has taken several initiatives in recent past that should help it in the unfolding business scenario in the mining sector, metro coaches and also in overseas market.