Jefferies raises Belrise Industries target price, sees 18% upside on strong demand, business expansion
Jefferies retained its Buy rating on Belrise Industries and raised its target price to Rs 280, citing strong automotive orders, two-wheeler demand and expanding renewable energy and aerospace businesses. The brokerage expects robust earnings growth, though customer concentration and margins remain key risks.
Jefferies analysts raised their target price for Belrise Industries to Rs 280, reflecting an 18% upside potential from the current market price of Rs 236.80. The brokerage firm maintains a 'Buy' rating on the auto components and equipment manufacturer, citing strong demand in the automotive segment and expanding presence in non-auto sectors like renewable energy and aerospace.
Analysts Nitij Mangal, Sagar Sahu, Kevin Verghese, and Rishi Venkateswaran highlighted strong new-order traction in two-wheelers, four-wheelers, and exports as key growth drivers. Belrise's revenue and operating performance showed resilience, with EBITDA growth of 5% YoY and PAT increasing by 9% YoY. The company's earnings per share (EPS) are expected to grow at a compound annual rate of 21% over FY26-29E, driven by its expanding business footprint.
Cost pressures stemming from higher commodity, fuel, transportation, and labor costs are easing, and Jefferies believes Belrise's margins will remain stable. While the company faces risks like customer concentration and margin pressure, Jefferies remains optimistic about its long-term growth prospects.
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