Aug 18: Jefferies has retained its ‘Buy’ rating on Belrise Industries and raised its price target to Rs 280 per share, from Rs 250 earlier, following the company’s Q1 FY27 performance. The revised target represents a potential upside of 19% from the share price considered by Jefferies.
Jefferies cited a steady operating quarter, sustained new-order momentum and a widening business footprint as key reasons for its positive stance. Belrise reported 13% year-on-year growth in total operating income in Q1 FY27, while EBITDA increased 5% year on year; manufacturing revenue rose 20%, supported by growth across the two-wheeler, passenger-vehicle and commercial-vehicle segments.
Jefferies also highlighted Belrise’s continuing order traction in automotive. During the quarter, the company secured a chassis programme for a fast-growing two-/three-wheeler OEM, added two new OEM customers in braking and suspension, and won an EV localisation programme for a high-selling Indian passenger-vehicle model encompassing 59 assemblies along with related tooling, fixtures and automation.
Jefferies sees Belrise’s growth opportunity extending beyond its established automotive operations. It pointed to a sheet-metal assembly order for a leading US solar-tracker OEM, with peak revenue potential estimated at around Rs 1.5 billion, as well as the company’s recent acquisitions in France and the UK, which provide entry into global aerospace component supply chains.
Jefferies expects Belrise’s EBITDA to grow at a compounded annual rate of 21% and earnings per share to grow at 25% annually between FY26 and the estimated FY29 period. While noting the company’s exposure to two-wheeler demand, customer concentration and input-cost pressures, the brokerage said its valuation is supported by the earnings trajectory and an expanding business footprint.