Belrise Industries soars 13% in 2 days, hits record on Jefferies 'Buy' call

The northward move in Belrise Industries shares came after foreign brokerage Jefferies initiated coverage with a 'Buy' rating, and set a target price of ₹135, implying a potential upside of 31per cent

Belrise Industries share price today: Auto components maker Belrise Industries share price extended its gaining streak on Wednesday, July 9, 2025, with the stock rising as much as 3.02 per cent to hit a fresh all-time high (record high) of ₹115.95 per share. 

 

The auto components maker’s share has surged 13.17 per cent over the last two trading sessions.

 

At 12:00 noon, Belrise Industries shares continued to trade higher, up 2.35 per cent at ₹115.20. In comparison, BSE Sensex was trading flat with a negative bias at 83,698.11 levels.

 

The northward move in Belrise Industries shares came after New York-based brokerage Jefferies initiated coverage with a ‘Buy’ rating, and set a target price of ₹135, implying a potential upside of 31 per cent.

 

“We initiate on Belrise with a ‘Buy’ rating and ₹135 price target (PT), 31 per cent upside. We expect a healthy 12 per cent revenue CAGR over FY25–28E, led by rising 2W demand, industry premiumisation, increasing content-per-vehicle, and expansion in 4Ws and exports,” said Nitij Mangal, Sagar Sahu, and Kevin Verghese of Jefferies, in a note dated July 7.

 

Given this, here are the top factors behind Jefferies’ ‘Buy’ call on Belrise Industries

 

Leading 2W metal component manufacturer

 

According to analysts at Jefferies, Belrise Industries is among India’s top players in the two-wheeler (2W) metal component segment, holding approximately 24 per cent market share in key product categories such as chassis and exhaust systems. The company derives about 67 per cent of its revenue from two-wheelers (2W) components, 9 per cent from four-wheelers (4Ws), and 20 per cent from commodity trading.

 

Revival in 2W demand

 

Following a sharp 35 per cent drop in 2W wholesale volumes during FY19–22, the industry rebounded with a 13 per cent CAGR over FY22–25, although FY25 volumes still remained 6 per cent below FY19 levels. 

 

Despite near-term demand softness and potential cost pressure from upcoming 2026 braking norms, Jefferies remains optimistic, citing demand tailwinds from income tax reliefs, improved liquidity, and PSU wage hikes expected in FY27. The brokerage projects an 11 per cent CAGR in industry production over FY25–28E, including exports.

 

Higher content-per-vehicle strategy

 

Belrise Industries is boosting its product mix with proprietary offerings like steering columns, brakes, and filters, targeting a 38 per cent increase in content-per-vehicle in the 2W segment. Industry premiumisation also offers a growth lever, with premium bike chassis valued at nearly 2.2x those in commuter bikes. Furthermore, the company has room to grow even with existing clients as its content-per-vehicle with the second-largest OEM is around 30 per cent lower than with its top customer.

 

Expansion in 4Ws, exports

 

With the Indian 4W component market nearly three times larger than the 2W segment, Belrise Industries is actively growing its 4W business through proprietary products like crossbeams and chassis systems, aided by its H-One acquisition. The company aims to double 4W revenue within 2–3 years. On the export front, it has secured new orders from two European OEMs, further diversifying its revenue base.

 

Robust growth outlook

 

Jefferies estimates Belrise will deliver a 12 per cent revenue and Ebitda CAGR over FY25–28E. This, combined with ongoing deleveraging, is expected to support an 18 per cent earnings per share (EPS) CAGR. 

 

Improving capacity utilisation should lift pretax return on capital employed (ROCE) from 13 per cent in FY25 to 15 per cent by FY28E. The balance sheet is also projected to strengthen considerably, moving from ₹2,800 crore net debt in FY25 to ₹600 crore net cash by FY28E, aided by ₹2,200 crore IPO proceeds.

 

Attractive valuations

 

At 18x FY26E P/E, Belrise Industries trades at a discount to peers considering its solid growth trajectory and expanding product base. Jefferies analysts noted that most Indian auto component stocks are priced at a 1.8x PEG (FY26 P/E to FY26–28 EPS CAGR), while Belrise Industries stands at just 0.8x by its estimates. 

 

Additionally, with related-party sales and purchases accounting for 26 per cent and 29 per cent of 9MFY25 revenue respectively, any simplification in group structure could provide a re-rating trigger.

 

Meanwhile, potential downside risks, analysts at Jefferies said, include softer-than-expected 2W demand, high dependence on a single customer, believed to be Bajaj, and any unfavourable developments around related-party transactions.