Belrise (BELRISE IN) Initiate at Buy: Moving from fabrication to higher tech

Research evidence excerpt

Belrise (BELRISE IN) Initiate at Buy: Moving from fabrication to higher tech

2.3x since its IPO in

May 2025, we see further upside driven by earnings growth and a potential re-rating. 52-WEEK PRICE (INR)

We estimate its manufacturing revenue to grow from cINR77bn to cINR114bn over FY26- 300.00

FY29e at a c14% CAGR, with revenue CAGRs of 11% in 2Ws, c29% in PVs and c19% in 188.00

CVs. We expect its EBITDA margin to remain range bound between 12-13%, while its

76.00

PAT should grow from cINR5bn to cINR9.6bn over FY26-FY29e at a c24% CAGR. 06/25 12/25 06/26

Moreover, the proposed INR20bn equity placement (QIP), if approved, should provide TargetHigh: 227.94price: 270.00Low: 98.11 Current: 216.12

adequate headroom for capacity expansion and inorganic growth. Source: LSEG IBES, HSBC estimates

Acquisitions should drive 4W/CV growth, while Belrise diversifies into aerospace/

defence by securing tech and client relationships that would otherwise take longer to Vipul Agrawal*, CFA Analyst, India Automotive

build organically, showing management’s focus on broadening capabilities. HSBC Securities and Capital Markets (India) Private Limited

vipul.agrawal@hsbc.co.in

◆ Belrise’s MagFilters acquisition adds filtration capabilities and creates cross-selling +91 97690 51842

opportunities with a Japanese PV OEM. Its H-One India acquisition broadens Yogesh Aggarwal*

Head of Research, India

access to another Japanese PV OEM while strengthening high-tensile steel, HSBC Securities and Capital Markets (India) Private Limited

automation, and R&D – supporting a meaningful increase in content per vehicle. yogeshaggarwal@hsbc.co.in

+91 22 2268 1246

◆ Belrise forayed into the aerospace sector through the acquisitions of SDM and Ayush Jhunjhunwala*