Target: ₹280
CMP: ₹233
Belrise, in the last two quarters, faced cost pressures from higher commodity and fuel prices, and increased transportation and labour costs. It believes that the worst of the cost pressures are now factored in, and retained its guidance of FY27 margins to be similar to FY26. Belrise has historically demonstrated low margin volatility, delivering EBITDA margins in a 12-14 per cent range over FY21-26.
The company secured multiple new orders in Q1, including: a chassis order from a fast-growing 2W/3W OEM; two new OEM additions for braking and suspension; and an EV localisation programme from a leading Indian 4W OEM for a high-selling EV model, covering 59 assemblies, tooling, fixtures and automation. Belrise is also expanding its non-auto footprint with a new order in renewable for sheet metal assemblies from a leading US solar tracker OEM with peak revenue potential of over ₹150 crore. With the two recent acquisitions in France and the UK, Belrise has also entered into global aerospace components supply chain.
We cut FY27 EPS by a slight 3per cent, and broadly retain FY28-29 estimates. We expect strong 21 per cent EBITDA and 25 per cent EPS CAGR over FY26-29E, including the earnings accretion from the merger of group entities in FY28. Its 29x one-year forward PE appears rich, but we believe justified for healthy growth and an expanding business footprint. We maintain Buy with revised ₹280 PT based on 27x September 2028 PE (earlier ₹250 based on 26x FY28E PE).
Published on August 19, 2026
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