Belrise shares: LKP sees 20% upside even as stock hits all-time high

Brokerage LKP Securities, in a note dated September 23, initiated coverage on Belrise Industries with a “Buy” rating and a 12-month target price of Rs 192, implying a 20 per cent potential upside from current levels.

Shares of Belrise Industries climbed 3.9 per cent on Tuesday to close at Rs 159.95 on the BSE, up from Monday’s close of Rs 153.95, lifting the company’s market capitalisation to Rs 14,233 crore. The stock touched a fresh 52-week high of Rs 164.60 in early trade and is now trading 79 per cent above its 52-week low of Rs 89.20, marking a nearly 64 per cent rally over the past six months.

The brokerage highlighted that the Pune-based auto ancillary is “well placed for growth as it is adding OEMs and establishing new ties” while also rolling out new products and boosting content per vehicle through premiumisation.

LKP further said that Belrise’s four-wheeler business, which contributed 9 per cent to FY25 topline, is poised to grow to 12–13 per cent by FY28 on the back of strong order inflows, technology upgrades via the H-One acquisition, and entry into Japanese OEMs. “We anticipate Belrise to deliver \~34 per cent PAT CAGR over FY25-28E as operating performance (13 per cent EBITDA CAGR) is multiplied by de-leveraging impact,” it said.

“Deepening relations with OEMs, a broader portfolio (suspension, steering columns, polymers, braking systems, cross-car beams and air tanks), an expanding client base, premiumisation in 2Ws, electrification of scooters and powertrain-agnostic products are great drivers for growth in the 2W segment. Sectoral tailwinds like tax reliefs, GST reduction, good monsoons, and rural upticks shall further assist 2W business of Belrise,” LKP said.

Meanwhile, the surge also propelled Shrikant S Badve, promoter of Belrise, into the billionaire club. Badve holds 53,00,36,384 shares, accounting for a 59.56 per cent stake in the integrated automotive component maker. At Tuesday’s levels, his holdings were valued at Rs 8,477.93 crore — nearly $1 billion at the current rupee-dollar rate.