Belrise Industri (BELRISE)

FairStock Score: 47/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding at 66.46% aligns owner-operators with minority investors
• Low debt/equity of 0.29 provides cushion in a cyclical auto components business
• Piotroski F-score of 7/9 and ROCE of 14.30% indicate acceptable capital efficiency
• Profit growth of 25.79% with sales growth of 8.02% shows operating leverage or margin expansion

Concerns

• P/E of 34.72 and PEG of 2.05 leave little margin of safety
• Free cash flow is negative at -₹277 Cr despite reported profits
• Implied ROE is only about 9.6%, suggesting modest value creation relative to book value
• Sales growth of 8.02% lags profit growth; latest quarter net margin is thin at 5.2%

AI Analysis

I try not to fall in love with any stock; I study the numbers and ask what I am buying. Belrise Industri currently trades at ₹217.80, so at a P/E of 34.72 the market is very optimistic. Using the price-to-book of 3.34 and book value of ₹65.18, the implied return on equity is only about 9.6% — hardly the hallmark of a mouth-watering franchise. The moat is not obvious to me from these numbers; ROCE of 14.30% is decent, but not a signal of pricing power. The balance sheet is reasonably sound: debt/equity is 0.29, promoter holding is 66.46%, and a Piotroski F-score of 7/9 suggests the company is not financially strained. Profit growth of 25.79% sounds good, but sales growth of only 8.02% makes me wonder if the profit jump is sustainable or comes from margin gains and cost controls. In the latest quarter, net profit of ₹122 Cr on sales of ₹2,341 Cr is a thin 5.2% margin. More importantly, free cash flow is -₹277 Cr. As Graham would say, net income is an opinion, while cash is a fact. A business that cannot turn profits into cash needs extra scrutiny. At a PEG of 2.05, I am paying twice for the growth already delivered, and the dividend yield is only 0.29%, so I get no income while waiting. This may be a fast grower, but the valuation leaves little room for error. I would need a lower price, improved cash conversion, or a visible sales acceleration before I place a meaningful bet. For now, I watch and wait.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer