Synopsis:
Jefferies recommends a “Buy” on Belrise Industries with a target of ₹135, implying 31.77% upside potential.
This small-cap stock, engaged in manufacturing automotive components, including chassis and suspension systems, serving OEMs globally with a strong presence in two-wheeler metal components, jumped 3 percent after Jefferies gave a target of Rs. 135, which has an upside potential of 32 percent.
With a market capitalization of Rs. 10,015.59 crores, the shares of Belrise Industries Limited closed at Rs. 112.55 per equity share on Tuesday, up nearly 9.86 percent from its previous day’s close price of Rs. 102.45.
Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Belrise Industries Limited with a target price of Rs. 135 per share, indicating an upside potential of 31.77 percent from its previous day’s close.
Jefferies has a positive outlook on Belrise Industries Limited, calling it one of India’s top two-wheeler (2W) metal component makers with a strong market share. The brokerage expects a 12 percent revenue CAGR from FY25 to FY28, supported by growing 2W demand, premiumisation in the industry, and expansion into four-wheelers (4Ws) and exports.
Belrise Industries Limited plans to double its 4W revenue in 2–3 years by adding new products like crossbeams and chassis systems. Jefferies also expects 12 percent EBITDA and 18 percent earnings per share growth during the same period.
Jefferies considers Belrise’s FY26 price-to-earnings (P/E) ratio of 18x attractive, given its strong growth outlook. The stock is also benchmarked against the sector average of 25x EV/EBITDA for FY27, highlighting its relative value and potential for upside.
Belrise Industries Limited was established in 1988 and is headquartered in Pune, Maharashtra, and is a major Indian automotive component manufacturer, formerly known as Badve Engineering. The company specializes in producing a wide range of components for the automotive and white goods sectors.
The company is one of the leading players in the Indian two-wheeler (2W) metal components market, with a strong 24 percent market share. The company has a wide product portfolio of over 1,000 items, including chassis systems, exhaust systems, BIW parts, polymer components, suspensions, and steering columns.
Belrise Industries Limited operates 17 manufacturing facilities spread across 10 cities in 9 states. The company also serves 30 original equipment manufacturers (OEMs), with whom it has built long-term and trusted customer relationships.
The company has a strong global presence, with key markets across India, Austria, Slovakia, the United Kingdom, Japan, and Thailand. This international reach supports its growth and expansion.
Coming into financial highlights, Belrise Industries Limited’s revenue has increased from Rs. 1,526 crore in Q4 FY24 to Rs. 2,274 crore in Q4 FY25, which has grown by 49.02 percent. The net profit has also grown by 587.50 percent from Rs. 16 crore in Q4 FY24 to Rs. 110 crore in Q4 FY25. Belrise Industries Limited’s revenue and net profit have grown at a CAGR of 15.37 percent and 10.52 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 14.3 percent and 14.1 percent, respectively. Belrise Industries Limited has an earnings per share (EPS) of Rs. 5.46, and its debt-to-equity ratio is 1.10x.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
