Belrise Industries Shares Hit Record High, Surge 14% In 2 Days; Jefferies Initiates 'buy'

Shares of Belrise Industries Ltd continued their beardown momentum for a 2nd consecutive convention connected Wednesday, jumping 3.51 per cent to touch a caller all-time precocious of Rs 116.50 connected BSE. With this, nan precocious listed car constituent shaper has gained astir 14 per cent successful conscionable 2 trading sessions.

The crisp upmove follows a initiation study from world brokerage patient Jefferies, which began sum connected nan banal pinch a 'Buy' standing and a value target of Rs 135, implying a further upside imaginable of 15.88 per cent from existent levels.

Jefferies highlighted Belrise's ascendant position successful nan two-wheeler (2W) metallic components segment, wherever it holds astir 24 per cent marketplace stock successful cardinal merchandise categories for illustration chassis and exhaust systems. The institution presently derives 67 per cent of its gross from 2W components, 9 per cent from four-wheelers (4W) and astir 20 per cent from commodity trading.

The brokerage projects a 12 per cent gross CAGR for Belrise complete FY25-28, driven by rising request for 2Ws, premiumisation trends, increasing content-per-vehicle and description successful some nan 4W and export segments. Jefferies besides expects 12 per cent EBITDA and 18 per cent EPS CAGR complete nan aforesaid period, supported by operational leverage and deleveraging of nan equilibrium sheet.

Belrise is besides aggressively expanding into nan 4W components market, which is astir 3 times nan size of nan 2W parts segment. Its acquisition of H-One has strengthened its beingness successful proprietary 4W products for illustration crossbeams and chassis systems. The institution besides precocious secured orders from 2 European OEMs, indicating rising export potential.

Jefferies sees Belrise's FY26 price-to-earnings ratio of 18x arsenic charismatic fixed nan robust maturation outlook. The institution is expected to trim nett indebtedness from Rs 2,800 crore successful FY25 to a nett rate position of Rs 600 crore by FY28, aided by proceeds from its caller Rs 2,200 crore IPO.

With beardown manufacture tailwinds, expanding diversification and improving financials, nan brokerage noted that Belrise appears poised for sustained semipermanent growth.

Published on: Jul 9, 2025 12:43 PM IST