Brokerage firm Investec has initiated coverage on Belrise with a buy rating and a target price of ₹185 per share, implying upside from the current market price of ₹144.81.
The brokerage highlighted that Belrise, a two-wheeler-focused auto ancillary player with largely engine-agnostic products, is well placed for growth as it strengthens its OEM relationships, rolls out new products, and drives average selling price improvement through premiumisation.
Investec also expects Belrise’s four-wheeler business to see a significant step-up, supported by a strong order book, improved technical capabilities following the H-One acquisition, and entry into Japanese OEMs as well as Maruti. The brokerage forecasts the company’s four-wheeler revenue share to rise to 14 percent by FY28 from 9 percent in FY25, broadening its total addressable market and paving the way for a possible valuation re-rating.
On earnings, Investec projects Belrise to deliver 30 percent PAT CAGR over FY25–28, with operating performance growth of 12 percent EBITDA CAGR amplified by deleveraging. It also pointed out that the proposed transfer of related party entities into Belrise should simplify the group structure and be value accretive, adding to potential re-rating drivers. At a valuation of 19 times FY27 estimated EPS, Investec believes the stock trades at a reasonable level.
Disclaimer: The views and recommendations expressed in this article are those of Investec. This publication does not provide investment advice. Readers are advised to consult certified financial advisers before making any investment decisions.
