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InCred sets ₹251 target for Rolex Rings after projected operating upcycle
The brokerage sees the bearing-rings maker moving from muted growth into an upcycle, citing improving US exports, rising European business, and stronger domestic demand.
InCred Equities has initiated coverage of small-cap auto component maker Rolex Rings with a Buy rating and a target price of ₹251, implying 28% upside from the stock’s last close of ₹196.36, LiveMint Markets reported.
The brokerage said Rolex Rings is entering a new operating cycle after a stretch of flat performance, arguing revenue weakness in FY22 to FY26 reflected temporary demand and external disruptions rather than a deterioration in the company’s underlying franchise.
InCred expects the recovery to be supported by improving US auto component exports, increasing European business via China+1 sourcing, and rising domestic demand for bearing rings.
It also highlighted spare capacity, saying higher volumes could boost profitability without requiring a proportionate increase in capital expenditure, while valuing the stock at 25 times FY28E PE on an FY28E EPS of ₹10.05.