Belrise Industries shares hit record high, surge 14% in 2 days; Jefferies initiates 'Buy'
Belrise Industries: The sharp upmove follows a bullish initiation report from global brokerage firm Jefferies, which began coverage on the stock with a 'Buy' rating.
- Jul 9, 2025,
- Updated Jul 9, 2025 12:48 PM IST
Shares of Belrise Industries Ltd continued their strong momentum for a second straight session on Wednesday, jumping 3.51 per cent to touch a fresh all-time high of Rs 116.50 on BSE. With this, the recently listed auto component manufacturer has gained nearly 14 per cent in just two trading sessions.
The sharp upmove follows a initiation report from global brokerage firm Jefferies, which began coverage on the stock with a 'Buy' rating and a price target of Rs 135, implying a further upside potential of 15.88 per cent from current levels.
Jefferies highlighted Belrise's dominant position in the two-wheeler (2W) metal components segment, where it holds about 24 per cent market share in key product categories like chassis and exhaust systems. The company currently derives 67 per cent of its revenue from 2W components, 9 per cent from four-wheelers (4W) and about 20 per cent from commodity trading.
The brokerage projects a 12 per cent revenue CAGR for Belrise over FY25-28, driven by rising demand for 2Ws, premiumisation trends, growing content-per-vehicle and expansion in both the 4W and export segments. Jefferies also expects 12 per cent EBITDA and 18 per cent EPS CAGR over the same period, supported by operational leverage and deleveraging of the balance sheet.
Belrise is also aggressively expanding into the 4W components market, which is nearly three times the size of the 2W parts segment. Its acquisition of H-One has strengthened its presence in proprietary 4W products like crossbeams and chassis systems. The company also recently secured orders from two European OEMs, indicating rising export potential.
Jefferies sees Belrise's FY26 price-to-earnings ratio of 18x as attractive given the robust growth outlook. The company is expected to reduce net debt from Rs 2,800 crore in FY25 to a net cash position of Rs 600 crore by FY28, aided by proceeds from its recent Rs 2,200 crore IPO.
With strong industry tailwinds, increasing diversification and improving financials, the brokerage noted that Belrise appears poised for sustained long-term growth.
Shares of Belrise Industries Ltd continued their strong momentum for a second straight session on Wednesday, jumping 3.51 per cent to touch a fresh all-time high of Rs 116.50 on BSE. With this, the recently listed auto component manufacturer has gained nearly 14 per cent in just two trading sessions.
The sharp upmove follows a initiation report from global brokerage firm Jefferies, which began coverage on the stock with a 'Buy' rating and a price target of Rs 135, implying a further upside potential of 15.88 per cent from current levels.
Jefferies highlighted Belrise's dominant position in the two-wheeler (2W) metal components segment, where it holds about 24 per cent market share in key product categories like chassis and exhaust systems. The company currently derives 67 per cent of its revenue from 2W components, 9 per cent from four-wheelers (4W) and about 20 per cent from commodity trading.
The brokerage projects a 12 per cent revenue CAGR for Belrise over FY25-28, driven by rising demand for 2Ws, premiumisation trends, growing content-per-vehicle and expansion in both the 4W and export segments. Jefferies also expects 12 per cent EBITDA and 18 per cent EPS CAGR over the same period, supported by operational leverage and deleveraging of the balance sheet.
Belrise is also aggressively expanding into the 4W components market, which is nearly three times the size of the 2W parts segment. Its acquisition of H-One has strengthened its presence in proprietary 4W products like crossbeams and chassis systems. The company also recently secured orders from two European OEMs, indicating rising export potential.
Jefferies sees Belrise's FY26 price-to-earnings ratio of 18x as attractive given the robust growth outlook. The company is expected to reduce net debt from Rs 2,800 crore in FY25 to a net cash position of Rs 600 crore by FY28, aided by proceeds from its recent Rs 2,200 crore IPO.
With strong industry tailwinds, increasing diversification and improving financials, the brokerage noted that Belrise appears poised for sustained long-term growth.