IPO Analysis: Belrise Industries Limited
Issue Period: 21st May 2025 to 23rd May 2025
Price Band: ₹85 to ₹90 per equity share
Face Value: ₹5 per share
IPO Size: Fresh Issue of ₹21,500 million (No Offer for Sale)
Listing: NSE and BSE
Lot Size:166
🔍 Company Overview
Belrise Industries Limited (formerly Badve Engineering Ltd) is a diversified auto component manufacturer headquartered in Aurangabad, Maharashtra. The company has established itself as a leading player in the manufacturing of:
Sheet metal components
Polymer components
Suspension and tubular parts
Body-in-white products
EV-compatible chassis and structural assemblies
With a wide network of 30+ manufacturing facilities across India, Belrise caters to 2W, 3W, 4W, CV, and agri-vehicle segments. It enjoys strong OEM relationships and has been focusing heavily on expanding its capabilities in electric vehicle-ready components.
🌍 Industry Overview
India's automotive components sector is poised for significant growth, driven by:
Rising domestic demand for 2W, PV, and CV segments
Increasing export opportunities
EV revolution, requiring new-age, powertrain-agnostic components
CRISIL projections (FY24–FY30):
2W segment CAGR: 5-7%
PV segment CAGR: 4.5-6.5%
CV segment CAGR: 3-5%
Belrise is well-positioned due to its backward integration, in-house R&D, and diversified product mix.
📈 Financial Performance Snapshot
| Particulars (₹ Cr) | FY22 | FY23 | FY24 | 9M FY24 |
|---|---|---|---|---|
| Revenue from Operations | 5,397 | 6,582 | 7,484 | 6,013 |
| EBITDA | 763 | 898 | 938 | 767 |
| Net Profit | 262 | 314 | 311 | 245 |
| EPS (₹) | 4.02 | 4.82 | 4.78 | 3.77 |
| Net Worth | 2,666 | 3,141 | 3,594 | 3,975 |
Key Trends:
Revenue grew at a CAGR of ~17.76% from FY22 to FY24
EBITDA margins stable (~12.5%)
Consistent profit generation, though net margin remains modest (~4%)
⚖️ Key Financial Ratios (FY24)
| Ratio | Value |
| ROE (%) | 13.33% |
| ROCE (%) | 17.81% |
| Current Ratio | 1.52 |
| Debt to Equity Ratio | 1.01 |
| Net Profit Margin (%) | 4.14% |
| Trade Receivables Turnover | 4.41x |
| Inventory Turnover | 9.44x |
| Return on Investment (ROI) | 30.70% |
The financials indicate High leverage which sugget need to be cautious.
🔢 Basis of Offer Price
The offer price of ₹85–90 per share is based on:
Forward earnings projections
Sector valuations
Profitability and margins
Industry demand forecasts
PE multiple can be seen as Price of 90 and EPS of 4.78 which sugget = 19X. Valuations are average not too high and too low, but should consider high debt as negative point.
🔍 Peer Group Comparison – Belrise Industries IPO
| Company | Revenue (₹ Cr) | EPS (₹) | P/E (x) | RoNW (%) | NAV (₹) | CMP (₹) as of 13 May 2025 |
|---|---|---|---|---|---|---|
| Belrise Industries | 7,484.24 | 4.78 | 19 | 13.33 | 35.94 | 90 |
| Bharat Forge Ltd | 15,682.07 | 20.43 | 58.94 | 13.84 | 153.90 | 1,204.10 |
| Uno Minda Ltd | 13,910.36 | 15.36 | 62.19 | 21.68 | 91.71 | 953.95 |
| Motherson Sumi Wiring India | 8,321.36 | 1.44 | 39.42 | 42.45 | 3.79 | 56.76 |
| JBM Auto Ltd | 4,723.19 | 15.12 | 45.52 | 22.21 | 98.75 | 688.30 |
| Endurance Technologies Ltd | 10,052.03 | 48.38 | 44.76 | 16.24 | 353.86 | 2,165.60 |
| Minda Corporation Ltd | 4,651.10 | 9.65 | 51.32 | 13.99 | 82.84 | 487.05 |
📌 Observations:
Belrise's EPS (₹4.78) and RoNW (13.33%) are in line with industry average.
Peer Average P/E: ~50.36x; Belrise at IPO price ₹90 implies a forward P/E of ~18.83x, suggesting undervaluation compared to peers.
Peers like Uno Minda, JBM Auto, Endurance Technologies enjoy higher ROEs due to premium product mix and scale.
Best company from above indutry can be seen as Minda as they are with lesser debt and better profitability with long term consistent history.
📅 Use of IPO Proceeds
As it is a 100% Fresh Issue, funds raised will be utilized for:
Capex and capacity expansion
Debt reduction
General corporate purposes
🔄 Shareholding Pattern (Pre-IPO)
| Shareholder Category | % Holding |
| Promoters | 100.00% |
| Public (Post IPO) | [To be updated] |
✅ Strengths
Strong client base (Hero, Bajaj, TVS, etc.)
EV-ready product portfolio
Geographic diversification (30+ plants across India)
Stable profitability with consistent cash flows
⚠️ Risks
High client concentration risk
Auto sector cyclicality
Margin pressures from commodity prices
Capex-led debt risk
🚀 Investor Outlook: Good or Bad?
Why it could be a good long-term opportunity:
Growing demand for EV-compatible components
Strong historical growth and manufacturing capabilities
Reasonable P/E valuation
Caution Points:
ROE and EPS have slightly moderated in recent quarters
High working capital needs & too high debt.
There are already exisiting opportunities like Minda, then why should we look at other with high debt and lesser coverage.
Overall Recommendation: Short-term listing gains may be moderate, depending on market conditions. Rather should go with Minda.
⚠️ Disclaimer:
This blog is for educational purposes only and not a recommendation to buy or sell any securities.
