Shares of Belrise Industries Ltd. fell nearly 2% on Thursday, snapping a two-day rally. The stock surged 13% over the last two trading sessions after Jefferies initiated coverage on it with a 'buy' rating and a price target of Rs 135, indicating a 31% upside potential on Tuesday.
The positive outlook was driven by strong growth prospects and attractive valuations, the brokerage said.
Belrise Industries is a leading player in the two-wheeler metal component market in India, holding approximately 24% market share in key product categories such as chassis and exhaust systems.
Earlier on July 9, Promoter Sumedh Badve told NDTV Profit that the automotive component manufacturer wants to replicate the success it has seen so far in the two-wheeler business in the four-wheeler segment. “Our economies of scale achieved a market leadership position in the two-wheeler industry. We would like to believe that we can replicate that in the four-wheel industry,” he added.
Belrise Industries Share Price
Shares of Belrise Industries fell as much as 1.71% to Rs 114.50 apiece. They pared losses to trade 0.58% lower at Rs 115.81 apiece, as of 10:30 a.m. This compares to a 0.22% decline in the NSE Nifty 50.
Since listing, the stock has risen 28.72% year-to-date. Total traded volume so far in the day stood at 2.90 times its 30-day average. The relative strength index was at 77.16.
The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 15.9%.
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