Strategic acquisition, expanding reach key to future growth of IPO-bound Belrise

Pune headquartered Belrise Industries, an auto ancillary firm, plans to lift Rs2,150 crore via a recent difficulty of fairness to repay partial debt. The promoter group’s stake will fall to 73% after the IPO from 100%. Its product portfolio consists of automotive sheet metallic & casting elements, polymer elements, suspension & mirror techniques. Its latest acquisition of H-One India is probably going to enhance the product portfolio. Nonetheless, its working margin earlier than depreciation and amortisation (EBITDA margin) has been declining for the reason that previous two years. The debt-equity ratio at round one is increased than 0.1-0.4 for a few of the friends. It’s anticipated to cut back after the IPO, which in flip might carry down curiosity bills. Although the IPO valuation is cheaper than friends, buyers might wait to see improved monetary efficiency after itemizing.

Integrated in 1996, Belrise Industries makes a speciality of element manufacturing for automotive & white items industries. It has additionally began delivering e-mobility elements & subsystems. As of March 31, 2025, the corporate operated 17 manufacturing services throughout 10 cities in 9 states throughout India. As of December 31, 2024, the corporate serviced 29 unique gear makers (OEMs) globally. Exports contributed 25% to income within the 9 months to December. In March 2025, Belrise acquired H-One India, a subsidiary of Japan’s H-One Firm, to boost capabilities in metallic stamping and fabrication for 4-Wheelers. The corporate plans to increase the distribution community to over 150 factors throughout India throughout the subsequent 2 years.
Income grew by 18% yearly to Rs7,484 crore between FY22 and FY24 whereas internet revenue rose by 9% to Rs311 crore. EBITDA margin declined step by step from 14.2% in FY22 to 12.5% in FY24. Within the nine-months to December 2024, income grew by a modest 1% to Rs6,013.4 crore whereas internet revenue decreased by 17% to Rs245.5 crore as a result of increased finance price and better deferred tax credit score within the year-ago interval. EBITDA margin remained fixed at 12.8%.

Valuation

Contemplating the post-IPO fairness and annualised internet revenue for the 9 months to December 2024, the corporate calls for a price-earnings (P/E) a number of of upto 24 in contrast with P/Es between 42 and 80 for friends together with Motherson Sumi Wiring India, Minda Corporation and JBM Auto.