Investec initiates coverage on Belrise Ind, eyes 27% upside; do you own?

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Belrise Industries share price today: Brokerage firm Investec has initiated coverage on Belrise Industries, a 2W-focused auto ancillary, with a 'Buy' rating, saying the company is currently trading at reasonable valuations and has multiple re-rating triggers.

 

Investec values the company at 22x Sep'27E (~20 per cent discount to Endurance/in-line with peers) and arrive at a target price of ₹185. The target price implies a 27.6 per cent upside from Tuesday's closing price of ₹144.93.  

On Wednesday, September 17, Belrise Industries stock rose nearly 6 per cent to hit an intraday high of ₹153.5 on the NSE.

At 11:30 AM, the stock was trading at ₹152.85, up 5.5 per cent on the NSE. Since its listing on May 28, 2025, the stock has surged over 53 per cent. The stock's 52-week high was at ₹156.9 and 52-week low was at ₹89.15 on the NSE. The company's total market capitalisation stood at ₹13,581 crore.

Here's why Investec holds a positive outlook on Belrise Industries:

According to analysts at Investec, Belrise is well placed for growth as it expands it OEM ties, rolls out new products and improves ASP via premiumisation. The company's four-wheeler business should also witness a significant stepup on the back of strong orderbook, improved tech capabilities (H-One) acquisition, entry into Japanese OEMs and Maruti.  

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Robust 2W business outlook

Belrise’s two-wheeler segment stands on solid ground, supported by its growing partnerships with OEMs, a wider product portfolio, including suspension systems and steering columns, and an expanding client base. Additionally, improving industry tailwinds and the increasing shift toward premium two-wheelers provide further momentum.

Building momentum in 4W segment

While the company's four-wheeler franchise is still at an early stage, it is well-positioned for rapid growth. Belrise has expanded its product portfolio and secured several orders from commercial and passenger vehicle OEMs, signaling strong traction. Enhanced technical capabilities and improved access to Japanese OEMs, facilitated through the acquisitions of H-One and Mag-Filter, are expected to drive the four-wheeler revenue share from 9 per cent in FY25 to 14 per cent by FY28.

Group structure overhaul to drive rerating

Belrise’s current group structure is complex as it includes several promoter-controlled entities. Management is working on a merger of these entities into a simplified structure, which is expected to be value-accretive and could lead to a re-rating of the stock.

 

Investec expects Belrise to achieve 30 per cent CAGR in profit after tax (PAT) between FY25 and FY28, driven by a 10 per cent CAGR in revenue, 40 basis points margin expansion, and a more efficient, deleveraged balance sheet.