A newly listed auto components stock has been witnessing healthy traction of late even as the Indian stock market trades rangebound due to tariff-related uncertainties. The stock in focus is Belrise Industries. Belrise Industries' share price hit a fresh record high of ₹115 in intraday trade on Wednesday, July 9, defying weak market sentiment.
Belrise Industries shares opened at ₹113.20 against their previous close of ₹112.55 and climbed over 2 per cent to their all-time high of ₹115. Around 10:45 AM, the stock traded 1.07 per cent up at ₹113.75. Equity benchmark Sensex was flat at 83,709 at that time.
Belrise Industries share price trend
Belrise Industries share price has seen a solid gain since its listing on the BSE and the NSE on May 28 this year.
On the NSE, the stock was listed at ₹100, a premium of 11.11 per cent over the issue price of ₹90, and on the BSE, it debuted at ₹98.50, with a premium of 9.44 per cent.
At the fresh record high of ₹115, the auto component stock has jumped 28 per cent in less than two months.
Jefferies sees further upside
Global brokerage firm Jefferies is positive about Belrise Industries due to its attractive valuation and healthy growth prospects.
In a July 7 report, Jefferies said it had initiated coverage on Belrise with a 'buy' rating and a target price of ₹135.
Considering the stock's fresh record high of ₹115, Jefferies' target price implies an over 17 per cent upside potential.
Jefferies expects Belrise Industries to clock a healthy 12 per cent revenue CAGR over FY25-28E.
According to the brokerage firm, the rise in Belrise Industries' revenue could be largely driven by rising two-wheeler (2W) demand, industry premiumisation, increasing content-per-vehicle, and expansion in four-wheelers and exports.
Moreover, Jefferies expects 12 per cent EBITDA and 18 per cent EPS CAGR for Belrise Industries over FY25-28E, along with deleveraging.
On the valuation front, Jefferies pointed out that most Indian auto part companies are trading at an average of 1.8 times PEG (the ratio of consensus FY26PE to FY26-28E EPS CAGR), while Belrise is at 0.8 times.
Besides, Jefferies finds the stock's 18 times FY26 PE attractive given the strong growth outlook.
"Related-party sales and purchases formed 26 per cent and 29 per cent of Belrise's 9MFY25 revenues, respectively, and any group structure simplification could lift valuations. Key risks include weaker 2W demand, high dependence on top customer (Bajaj in our view), and any adverse related-party event," Jefferies said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.