PSU stock BEML has moved higher on impressive volumes on Thursday, riding on news that the Union Cabinet has approved new metro rail policy. The government’s new policy aims to expand the metro network across various cities in the country through Public-Private Partnership model. The plan looks at construction of new Metro Rail systems via the Design-Build-Finance-Operate-Transfer mode and allowing private players to operate the service and involving them works such as  maintenance and upgrading of infrastructure.

BEML already has a pretty strong order book and with the new policy on Metro Rail set to result in more order inflow for the company, the stock may well go on to test higher levels in the near to medium term.

The company announced that its order book’s value stood at Rs 7582 crore at the beginning of the June 2017-18 quarter and during the quarter it bagged orders worth Rs 815 crore.

The company executed orders worth Rs 632 crore in the April – June quarter. As on 30 June 2017, the order book value stood at Rs 7765 crore. Out of this, the company has execute orders worth Rs 2388 crore during the current fiscal and the rest, Rs 5377 crore worth of orders, in the next financial year.

BEML had reported a net loss of Rs 85.13 crore for the quarter ended June 2017, as against net profit of Rs 186.40 crore in the preceding quarter. In April – June 2016 quarter, the company had posted a loss of Rs 107.10 crore.

At Rs 1868, off the day’s high of Rs 1879, BEML is now up 8.8% from its previous closing price. More than 3.1 lakh shares have changed hands so far at the BEML counter on BSE today, about 3.3 times the average daily volume of 0.91 lakh shares. On the National Stock Exchange, the BEML counter has clocked a volume of nearly 3.2 million shares so far in the session. Th stock touched a new 52-week high of Rs 1880 on NSE today.