Jefferies initiated protection on the inventory with a ‘Purchase’ ranking and a worth goal of Rs 135. The brokerage expects robust earnings progress backed by rising two-wheeler (2W) demand, product premiumisation, and growth in four-wheeler (4W) and export segments.
“We anticipate 12% income and EBITDA CAGR and 18% EPS CAGR over FY25–28E, together with deleveraging. Belrise’s 18x FY26 PE is enticing given the expansion outlook,” Jefferies stated in its observe.
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Why Jefferies is bullish on Belrise Industries
Belrise is certainly one of India’s prime gamers in 2W steel parts, holding a ~24% market share in key product classes like chassis and exhaust techniques. Round 67% of its income comes from 2W components, 9% from 4Ws, and 20% from commodity buying and selling.
Regardless of a requirement droop between FY19–22, 2W wholesales have rebounded with a 13% CAGR over FY22–25. Jefferies sees additional upside from bettering liquidity, tax cuts, and upcoming PSU wage hikes.
Belrise can also be increasing its proprietary product portfolio—like steering columns and filters—to spice up its content-per-vehicle by 38%. The premiumisation development in bikes is one other tailwind, with chassis worth in premium fashions being 2.2x that of commuter bikes.
Within the 4W section, Belrise is constructing scale via proprietary merchandise like cross-beams and chassis techniques, following the H-One acquisition. The corporate goals to double 4W revenues in 2–3 years and has secured new orders from two European OEMs.
Jefferies expects Belrise’s web debt of Rs 2,800 crore at FY25-end to swing to a web money place of Rs 600 crore by FY28, supported by IPO proceeds of Rs 2,200 crore.
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Belrise Industries debuted on the inventory exchanges on Might 28, 2025. The corporate manufactures safety-critical parts for two-wheelers, three-wheelers, four-wheelers, business autos, and agri-vehicles.
Its clientele contains main auto companies comparable to Bajaj Auto, Hero MotoCorp, Honda, Jaguar Land Rover, Royal Enfield, Tata Motors, Mahindra & Mahindra, and VE Industrial Autos.
(Disclaimer: Suggestions, solutions, views and opinions given by the consultants are their very own. These don’t characterize the views of the Financial Instances)
