Belrise Industries Ltd
Belrise Industries Ltd
Consumer DiscretionaryIncorporated in 1988, Belrise Industries Limited manufactures Automotive Sheet Metal and casting parts, Polymer components, Suspension, and mirror systems for automotives.[1]
Belrise Industries offers strong profit growth of 22.5% CAGR over 5 years with unanimous analyst buy ratings (6/6), though the stock trades at a premium PE of 42.8x and PB of 4.07x. The debt reduction trend and 14% sales CAGR over 5 years support the growth thesis, but elevated valuations and deteriorating working capital warrant caution.
Key Fundamentals
SmallcapAuto ComponentsAutomobilesTechnical Indicators
Key Insights
Strengths
2- Company has reduced debt.
- Company has delivered good profit growth of 22.5% CAGR over last 5 years
Weaknesses
3- Stock is trading at 4.28 times its book value
- Company has a low return on equity of 13.1% over last 3 years.
- Working capital days have increased from 43.8 days to 65.4 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoBelrise Industries offers strong profit growth of 22.5% CAGR over 5 years with unanimous analyst buy ratings (6/6), though the stock trades at a premium PE of 42.8x and PB of 4.07x. The debt reduction trend and 14% sales CAGR over 5 years support the growth thesis, but elevated valuations and deteriorating working capital warrant caution.
- Unanimous analyst consensus with 100% buy ratings (6 out of 6 analysts recommend buy)
- Strong compounded profit growth of 22.5% CAGR over the last 5 years demonstrates consistent earnings expansion
- TTM profit growth accelerating to 45%, indicating improving profitability trajectory
- Consistent revenue growth with 5-year compounded sales CAGR of 13% and TTM sales growth of 14%
- Company has actively reduced debt, strengthening the balance sheet and lowering financial risk
- Stock has delivered 136% return over the past 1 year, reflecting strong market momentum
- Steady ROE of 13-14% maintained over 3 to 5 year periods showing operational consistency
- Market cap of Rs 21,748 crore provides reasonable liquidity and institutional interest as a mid-to-large cap auto ancillary player
- PE ratio of 42.8x is expensive for an auto components company, pricing in significant future growth
- Trading at 4.07x book value (PB) which is elevated for a manufacturing business with 13% ROE
- Working capital days deteriorated significantly from 43.8 days to 65.4 days, indicating potential cash flow stress
- ROE of 13.1% over 3 years is relatively low and does not justify the premium valuation multiple
- No 52-week high/low data available, limiting technical analysis and risk assessment capability
- Dividend yield of only 0.23% offers negligible income return to shareholders at current prices
- Limited long-term track record with 10-year growth data unavailable, suggesting recent listing or restructuring
- Consumer discretionary sector exposure makes earnings vulnerable to economic slowdowns and demand cyclicality
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- EBITDA margin contracts 70bps Jun 9
EBITDA margin declined 70 basis points to 11.4% in Q4 FY26 from 12.1% in the year-ago period, despite revenue growth of 12%.
- Stock near consensus target already Jun 9
With the stock hitting ₹233.39, it is already close to the consensus 12-month target of ₹248.11, leaving only ~15% upside from current levels.
- HSBC initiates with Buy, ₹270 target Jun 9
HSBC initiated coverage with a Buy rating and ₹270 price target, forecasting revenue growth from ₹7,700 crore in FY26 to ₹11,400 crore by FY29 and PAT nearly doubling to ₹960 crore.
- Stock hits 52-week high, up 137% Jun 9
Shares surged 8% to a 52-week high of ₹233.39 with volumes exceeding 22 million shares, delivering 137% returns over the last 12 months.
- Q4 FY26 net profit up 18% Jun 9
Consolidated net profit rose 18% YoY to ₹130 crore in Q4 FY26 while revenue from operations grew 12% to ₹2,553 crore with gross margins expanding 50bps to 19.2%.
- Defence and aerospace diversification Jun 9
Belrise acquired two overseas facilities for aircraft and space equipment manufacturing and established relationships with one Israeli and two Indian defence OEMs.
- 9 of 10 analysts rate Buy Jun 9
Nine out of ten analysts covering Belrise have a Buy rating, with a consensus 12-month price target of ₹248.11.
- Zero promoter share encumbrance Jun 6
Promoters disclosed nil share encumbrance for FY26, with Shrikant Shankar Badve holding 53,00,36,384 shares — signaling strong promoter confidence.
- Company Secretary resigns Jun 12
CS Manish Kumar resigned as Company Secretary and Compliance Officer effective June 12, 2026, citing personal commitments.
- Investor meet in London Jun 12 Jun 9
Belrise Industries scheduled a meeting with analysts and investors in London on June 12, 2026, organized by Jefferies India.
TL;DR: Belrise Industries is firing on multiple cylinders — strong Q4 FY26 earnings growth, a new HSBC Buy initiation with a ₹270 target, and aggressive diversification into defence and aerospace. The 137% one-year rally and margin contraction at the EBITDA level are worth watching as the stock approaches consensus targets. Overall trend remains bullish with institutional attention increasing, though the valuation gap to consensus is narrowing and margin expansion needs to come through for continued re-rating.
Quarterly Results
| Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,476 | 1,425 | 1,590 | 1,780 | 1,799 | 1,798 | 1,802 | 1,821 | 2,107 |
| Expenses | 1,284 | 1,209 | 1,376 | 1,548 | 1,545 | 1,542 | 1,542 | 1,565 | 1,826 |
| Operating Profit | 192 | 215 | 214 | 232 | 254 | 255 | 260 | 257 | 281 |
| OPM % | 13% | 15% | 13% | 13% | 14% | 14% | 14% | 14% | 13% |
| Other Income | 5 | 9 | 14 | 29 | 12 | 21 | 22 | 27 | 20 |
| Interest | 51 | 59 | 69 | 57 | 44 | 60 | 35 | 31 | 34 |
| Depreciation | 89 | 83 | 81 | 83 | 83 | 86 | 82 | 89 | 87 |
| PBT | 58 | 83 | 78 | 121 | 140 | 130 | 164 | 164 | 180 |
| Tax % | 15% | 21% | 17% | 25% | 21% | 21% | 25% | 29% | 24% |
| Net Profit | 49 | 66 | 65 | 91 | 110 | 103 | 123 | 117 | 136 |
| EPS in Rs | 0.75 | 1.01 | 1 | 1.4 | 1.69 | 1.15 | 1.38 | 1.31 | 1.53 |
Profit & Loss
| Mar 2018 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Sales | 2,857 | 3,828 | 4,007 | 4,897 | 5,395 | 6,033 | 6,594 | 7,528 |
| Expenses | 2,542 | 3,289 | 3,438 | 4,170 | 4,597 | 5,189 | 5,679 | 6,476 |
| Operating Profit | 316 | 539 | 569 | 728 | 798 | 843 | 915 | 1,053 |
| OPM % | 11% | 14% | 14% | 15% | 15% | 14% | 14% | 14% |
| Other Income | 156 | 36 | 28 | 25 | 38 | 62 | 65 | 90 |
| Interest | 111 | 163 | 197 | 215 | 217 | 227 | 228 | 160 |
| Depreciation | 120 | 177 | 206 | 245 | 306 | 321 | 329 | 344 |
| PBT | 240 | 234 | 194 | 293 | 313 | 358 | 423 | 638 |
| Tax % | 15% | 2% | 10% | 16% | 13% | 17% | 21% | 25% |
| Net Profit | 205 | 230 | 175 | 247 | 271 | 295 | 332 | 478 |
| EPS in Rs | — | — | — | — | — | 4.54 | 5.11 | 5.38 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 11% | 10% |
Balance Sheet
| Mar 2018 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 20 | 20 | 20 | 20 | 20 | 326 | 326 | 445 |
| Reserves | 776 | 1,242 | 1,416 | 1,685 | 1,946 | 1,920 | 2,252 | 4,639 |
| Borrowings | 1,516 | 1,973 | 2,382 | 2,632 | 2,353 | 2,254 | 2,706 | 1,237 |
| Other Liabilities | 326 | 677 | 742 | 743 | 828 | 1,086 | 1,235 | 1,553 |
| Total Liabilities | 2,638 | 3,913 | 4,561 | 5,080 | 5,148 | 5,585 | 6,518 | 7,873 |
| Fixed Assets | 1,342 | 1,834 | 2,026 | 2,458 | 2,427 | 2,459 | 2,704 | 2,917 |
| CWIP | 332 | 330 | 295 | 120 | 80 | 179 | 263 | 240 |
| Investments | 35 | 38 | 43 | 70 | 53 | 21 | 354 | 374 |
| Other Assets | 929 | 1,710 | 2,198 | 2,432 | 2,589 | 2,927 | 3,197 | 4,342 |
| Total Assets | 2,638 | 3,913 | 4,561 | 5,080 | 5,148 | 5,585 | 6,518 | 7,873 |
Cash Flow
| Mar 2018 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Operating | — | 520 | 97 | 369 | 756 | 762 | 654 | 817 |
| Investing | — | -550 | -289 | -439 | -198 | -360 | -1,019 | -487 |
| Financing | — | 34 | 203 | 39 | -496 | -328 | 223 | 396 |
| Net Cash Flow | — | 5 | 11 | -31 | 63 | 74 | -142 | 726 |
| Free Cash Flow | — | 67 | -264 | -133 | 591 | 310 | -19 | 207 |
| CFO/OP | — | 101 | 21 | 57 | 102 | 100 | 82 | 92 |
Ratios
| Mar 2018 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Debtor Days | 50 | 45 | 62 | 47 | 52 | 48 | 58 | 60 |
| Inventory Days | 33 | 40 | 51 | 41 | 41 | 47 | 50 | 53 |
| Days Payable | 31 | 50 | 48 | 45 | 41 | 54 | 61 | 74 |
| Cash Conversion Cycle | 51 | 34 | 65 | 43 | 52 | 42 | 46 | 39 |
| Working Capital Days | 74 | 74 | 39 | 36 | 33 | 30 | 36 | 65 |
| ROCE % | — | — | 11% | 12% | 12% | 13% | 13% | 14% |
Documents
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Company Information
Incorporated in 1988, Belrise Industries Limited manufactures Automotive Sheet Metal and casting parts, Polymer components, Suspension, and mirror systems for automotives.[1]