Jefferies initiated coverage on the stock with a ‘Buy’ rating and a price target of Rs 135. The brokerage expects strong earnings growth backed by rising two-wheeler (2W) demand, product premiumisation, and expansion in four-wheeler (4W) and export segments.
“We expect 12% revenue and EBITDA CAGR and 18% EPS CAGR over FY25–28E, along with deleveraging. Belrise’s 18x FY26 PE is attractive given the growth outlook,” Jefferies said in its note.
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Why Jefferies is bullish on Belrise Industries
Belrise is one of India’s top players in 2W metal components, holding a ~24% market share in key product categories like chassis and exhaust systems. Around 67% of its revenue comes from 2W parts, 9% from 4Ws, and 20% from commodity trading.
Despite a demand slump between FY19–22, 2W wholesales have rebounded with a 13% CAGR over FY22–25. Jefferies sees further upside from improving liquidity, tax cuts, and upcoming PSU wage hikes.
Belrise is also expanding its proprietary product portfolio—like steering columns and filters—to boost its content-per-vehicle by 38%. The premiumisation trend in bikes is another tailwind, with chassis value in premium models being 2.2x that of commuter bikes.
In the 4W segment, Belrise is building scale through proprietary products like cross-beams and chassis systems, following the H-One acquisition. The company aims to double 4W revenues in 2–3 years and has secured new orders from two European OEMs.
Jefferies expects Belrise’s net debt of Rs 2,800 crore at FY25-end to swing to a net cash position of Rs 600 crore by FY28, supported by IPO proceeds of Rs 2,200 crore.
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Belrise Industries debuted on the stock exchanges on May 28, 2025. The company manufactures safety-critical components for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles.
Its clientele includes leading auto firms such as Bajaj Auto, Hero MotoCorp, Honda, Jaguar Land Rover, Royal Enfield, Tata Motors, Mahindra & Mahindra, and VE Commercial Vehicles.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
