Stocks to Buy: This auto parts maker is already up 137% from its IPO price and HSBC sees further upside

The brokerage firm set a price target of ₹270 for the stock, implying an upside potential of nearly 26% from Monday’s closing price of ₹214.85.

HSBC said Belrise is moving beyond traditional metal fabrication into more advanced manufacturing capabilities to cater to the evolving needs of both passenger vehicle and commercial vehicle manufacturers.

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According to the brokerage, the company’s strategy is being supported by a series of recent acquisitions that have expanded its product portfolio and technological capabilities.

Belrise’s efforts to diversify into defence and aerospace segments, were also highlighted by HSBC in its note, which could provide additional growth avenues beyond its core automotive business.

HSBC expects ongoing simplification of the group’s corporate structure to improve operational efficiency and enhance shareholder value over time.

The brokerage estimates Belrise’s manufacturing revenue to increase from around ₹7,700 crore in FY26 to ₹11,400 crore by FY29, while EBITDA margins are expected to remain broadly stable in the 12% – 13% range.

HSBC forecasts profit after tax for Belrise to nearly double from about ₹500 crore in FY26 to ₹960 crore by FY29, translating into a compound annual growth rate (CAGR) of approximately 24%.

Belrise’s proposed ₹2,000 crore qualified institutional placement (QIP), if approved, would provide sufficient financial flexibility for future capacity expansion and potential inorganic growth opportunities, HSBC’s note said.

10 analysts have coverage on Belrise Industries, nine of whom have a “buy” rating and the other one has a “hold” recommendation. The stock has a consensus 12-month price target of ₹248.11, implying a potential upside of about 15% from current levels.

Shares of Belrise Industries rose as much as 8%, to hit the intraday high of ₹233.15. The stock was trading 6.3% up at ₹229.30 as of 10.37 am. It has surged 121.4% over the last 12 months, and is up over 155% from its issue price of ₹90 per share.