Belrise promoter Shrikant Badve joins billionaire club as stock hits record high

Shrikant S Badve, promoter of Belrise Industries, joined the billionaire club on Tuesday as the company's stock surged to a record high. Badve owns 53,00,36,384 shares, representing a 59.56 per cent stake in the integrated automotive component manufacturer. At Tuesday's trading prices, his holdings were valued at Rs 8,480.19 crore, roughly equivalent to $1 billion at the current rupee-dollar rate.

Belrise is a two-wheeler-focused auto ancillary company with largely engine agnostic products. It offers a portfolio of safety-critical systems and engineering solutions.   

Badve's wife Supriya Shrikant Badve held 4,33,33,920 shares or 4.87 per cent stake in the company. His sons Sumedh and Swastid also own shares in the company, whose shares hit a record high of Rs 162.60 apiece earlier today. At 11 am, the scrip was trading 3.93 per cent higher at Rs 160 on BSE.

Investec in a recent note said the company is well-placed for growth as it expands its OEM ties, rolls out new products and improves ASP via premiumisation.

"The company’s 4W business too should see a significant step-up on the back of strong orderbook, improved tech capabilities (H-One acquisition), entry into Japanese OEMs and Maruti. We forecast 4W revenue share to increase to 14 per cent by FY28E (FY25: 9 per cent), broadening its TAM and spurring a likely valuation re-rating. We expect Belrise to deliver 30 per cent PAT CAGR over FY25-28E, as operating perf (12 per cent Ebitda CAGR) is amplified by de-leveraging," Investec said. 

The foreign brokerage believes the proposed transfer of related party entities into Belrise should simplify the group structure and be value accretive, adding to the re-rating drivers. 

"Valuation of 19x FY27E EPS is reasonable in our view given its strong growth prospects and multiple re-rating catalysts ahead. Initiate with Buy," it said on September 16.