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Check Before You Invest : Belrise Industries Ltd

BSE: 544405 NSE: BELRISE ISIN: INE894V01022
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Belrise Industries Ltd belong to?
Belrise Industries Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Belrise Industries Ltd a good quality company?
Belrise Industries Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Belrise Industries Ltd undervalued or overvalued?
Belrise Industries Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 41.75 34.88
Price to Book 3.83 2.49
Price to Sales 2.62 1.80
EV to EBITDA 17.63 14.61
Q.4 Is Belrise Industries Ltd a good buy now?
Belrise Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Belrise Industries Ltd?
Belrise Industries Ltd revenue growth is 9.3% for FY-2025, which is below its 5-year CAGR of 11.49%, indicating slower growth.

Q.2 Gross Profit margin of Belrise Industries Ltd?
Belrise Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is in line with its 5-year median of 11.4%, indicating stable margins.

Q.3 Operating Profit Margin of Belrise Industries Ltd?
Belrise Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.9% for FY-2025, which is in line with its 5-year median of 14.2% indicating stable margins.

Q.4 Net Profit Margin of Belrise Industries Ltd?
Belrise Industries Ltd Net Profit Margin is 5.04% for FY-2025, is in line with its 5-year median of 5.03%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.4 11.4
Operating Profit Margin (%) 13.9 14.2
Net Profit Margin (%) 5.04 5.03

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Belrise Industries Ltd?
Belrise Industries Ltd Return on Asset is 5.44%, which is in line with its 5-year historical median of 5.27%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Belrise Industries Ltd?
Belrise Industries Ltd Return on capital employed is 13.49% for FY-2025, which is above its 5-year historical median of 12.56%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Belrise Industries Ltd?
Belrise Industries Ltd Return on equity is 13.82% for FY-2025, which is in line with its 5-year historical median of 14.03%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Belrise Industries Ltd?
Belrise Industries Ltd Cash conversion cycle is 39 days, below its 5-year historical median of 42 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.08 1.05
ROE (%) 13.82 14.03
ROCE (%) 13.49 12.56
Cash Conversion Cycle 39 days 42 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Belrise Industries Ltd?
Belrise Industries Ltd Debt-to-Equity ratio is 1.03, which is above the industry average of 0.40, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Belrise Industries Ltd?
Belrise Industries Ltd Debt to cash flow from operations is 4.04, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Belrise Industries Ltd?

Q.1 Promoter shareholding and pledge status of Belrise Industries Ltd?
Promoters hold 66.46% of the Belrise Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Belrise Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Belrise Industries Ltd vs industry peers?
Belrise Industries Ltd revenue CAGR is 11.49%, compared to the industry median CAGR of 11.89%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 9.3 11.9
Gross Profit Growth (%) 8.8 16.2
Operating Profit Growth (%) 8.5 14.7
Net Profit Growth (%) 12.5 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.08 1.24
ROE (%) 13.82 11.65
ROCE (%) 13.49 13.5
Cash Conversion Cycle (days) 39.36 46

Valuation & price assessment

Q.1 Stock return of Belrise Industries Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Belrise Industries Ltd vs historical?
The current P/E ratio of 41.75 is higher than its historical median of 34.88, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 41.75 34.88 28.71
Price to Book 3.83 2.49 2.99
Price to Sales 2.62 1.80 1.35
EV to EBITDA 17.63 14.61 11.85

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