• Centrum sees strong order book, marquee wins and positive margin outlook for Belrise.
• Belrise stock closed 3.3% higher at Rs 19,350 crore market cap.
• Centrum optimistic on revenue growth, marquee wins and aerospace vertical

Global brokerage Jefferies expects a 19% upside in the Belrise Industries stock. The company is engaged is a automotive component manufacturer in India. The brokerage has also revised its price target to Rs 250 against the earlier target of Rs 215. The target price is based on 26x FY28 estimated earnings per share (EPS).

Jefferies has upgraded the target post in-line March quarter performance and a positive medium-term earnings outlook. 

In Q4, Belrise’s EBITDA and profit after tax (PAT) rose 5% and 17% year-on-year, respectively, Meeting Jefferies’ estimates. 

Operating income rose 12% year-on-year to Rs 2,552.8 crore, led by a strong 21% year-on-year rise in manufacturing revenues, even as trading revenues declined 21%. Manufacturing revenue growth was led by an 18% rise in the two- and three-wheeler (2W+3W) segment, 32% in commercial vehicles (CVs), and 70% in passenger vehicles (PVs) from a low base.

Meanwhil, JM Financial in its earnings review assigned a price target of Rs 250 on the stock. 

The brokerage expects revenue growth of 16% each for FY27E and FY28E. JM revised FY27E/28E EPS by -2.8%/+6%, yielding a revised TP of Rs 250 (earlier Rs 225) based on 26x FY28E EPS (earlier 25x).

According to JM Financial, the management expects FY26-level EBITDA margin to sustain through raw materials cost pass-through and OEM negotiations on labour/logistics costs. The brokerage has build in some near-term pressure (11.8% in FY27E versus 12.1% in FY26E). 

Centrum Broking in a report said the near term outlook remains positive underpinned by (1) mid-teen FY27 revenue visibility led by a strong order book, rising CPV and accelerating PV/CV diversification; (2) marquee wins across Japanese 2W OEM (~Rs 220 crore peak), Bangalore brownfield (Rs 90 crore), Italian 650cc premium program and the emerging EV-JV ecosystem; and (3) Aerospace & Defence emerging as a high-optionality vertical post Chester Hall (~6x EV/EBITDA) and SDM
acquisitions, with EBITDA breakeven guided in FY27. 

The brokerage expects margins to steady aided by raw materials passthrough, while the proposed Rs 2000 crore QIP supports balance sheet and inorganic build-out.

Consensus is currently building Revenue /Ebitda /EPS CAGR of 13.0% /15.3% /and 27.2% over FY26-28E, Centrum added. 

Belrise Industries stock closed 3.30% higher at Rs 19,350 crore. Market cap of the firm stood at Rs 19,350 in the current session. 

Belrise Industries Limited is a prominent Indian automotive component manufacturer providing technology-led solutions across diverse vehicle segments. The company specializes in safety-critical systems and components including metal chassis, polymer products, suspension systems, body-in-white (BIW) parts, and exhaust systems.