Shares of Belrise Industries Limited gained 8 percent on Tuesday after global brokerage HSBC initiated coverage on the stock with a ‘Buy’ rating and a 12-month target price of ₹270 per share.
The target implies an upside of about 25 percent from the stock’s previous closing price.
With a market capitalization of ₹20,574 crore, Belrise Industries rose to an intraday high of ₹233.30. The stock was trading at ₹231.20, compared with its previous close of ₹215.95.
The stock has delivered returns of:
- 123 percent over the last one year
- 26 percent year-to-date
- 46 percent in the past six months
- 6 percent over the last month
HSBC initiates coverage
HSBC said Belrise is moving beyond traditional metal fabrication and expanding into advanced manufacturing capabilities.
According to the brokerage, the company’s recent acquisitions are aimed at:
- Expanding technical capabilities
- Increasing product offerings
- Strengthening its position in passenger vehicle and commercial vehicle segments
HSBC also noted that Belrise is entering the:
- Defence sector
- Aerospace sector
The brokerage expects these businesses to provide additional growth opportunities over the long term.
Revenue expected to cross ₹11,400 crore
HSBC estimates manufacturing revenue will rise from around ₹7,700 crore in FY26 to ₹11,400 crore by FY29.
The brokerage also expects profit after tax to almost double during the period.
HSBC projections
| Particulars | FY26E | FY29E |
|---|---|---|
| Manufacturing Revenue | ₹7,700 crore | ₹11,400 crore |
| PAT | ₹500 crore | ₹960 crore |
| EBITDA Margin | 12%-13% | 12%-13% |
The projected increase in profit implies a CAGR of around 24 percent.
₹2,000 crore QIP proposed
Belrise has proposed a ₹2,000 crore Qualified Institutional Placement (QIP).
According to HSBC, the capital raise could provide financial flexibility for:
- Capacity expansion
- Inorganic growth opportunities
- Future acquisitions
Business profile
Belrise Industries is a Tier-1 automotive component manufacturer catering to:
- Two-wheelers
- Three-wheelers
- Passenger vehicles
- Commercial vehicles
- Agricultural machinery
Its product portfolio includes:
- Chassis systems
- Exhaust systems
- Suspension components
- Polymer parts
- Mirror systems
- Safety-critical components
Q4 FY26 performance
The company reported higher revenue and profit during the March quarter.
Q4 FY26 financials
| Particulars | Q4 FY26 | Q4 FY25 | Growth |
|---|---|---|---|
| Revenue | ₹2,107 crore | ₹1,799 crore | 17% |
| EBITDA | ₹281 crore | ₹254 crore | 11% |
| Net Profit | ₹136 crore | ₹110 crore | 24% |
| EPS | ₹1.53 | ₹1.69 | -9.5% |
Key highlights
- Stock gained 8 percent
- HSBC initiated coverage with a ‘Buy’ rating
- Target price: ₹270
- FY29 revenue estimate: ₹11,400 crore
- FY29 PAT estimate: ₹960 crore
- Proposed QIP size: ₹2,000 crore
TL;DR:
Belrise Industries rose 8 percent after HSBC initiated coverage with a ‘Buy’ rating and a target price of ₹270. The brokerage expects revenue to reach ₹11,400 crore and profit to nearly double to ₹960 crore by FY29.
AI summary:
- Belrise Industries gained 8 percent on Tuesday.
- HSBC initiated coverage with a Buy rating.
- The brokerage set a target price of ₹270.
- Revenue is projected to reach ₹11,400 crore by FY29.
- PAT is expected to rise to around ₹960 crore.