Rolex Rings shares surge 91 percent in a year as brokerage keeps buy tag

Shares of Rolex Rings Limited have given strong returns to investors over the past year. The stock gained 91 percent in the last one year despite closing 2.20 percent lower at ₹213.25 per share on the BSE on Friday, November 13. The Gujarat-based auto parts company saw its market cap reach ₹5,594.25 crore. The stock went up by 6 percent in one week, 30 percent in two weeks, 25 percent in one month, and 44 percent in six months.

Growth Drivers

The company posted strong numbers in the second quarter of the 2026-27 financial year. Its revenue, EBITDA, and profit after tax jumped by 43 percent, 72 percent, and 67 percent respectively on an annual basis. Export of auto parts grew by 90 percent year-on-year to ₹1.29bn, which mainly drove the revenue growth. The domestic bearings and domestic auto components segments also saw healthy growth of about 10 percent and 30 percent.

Brokerage Outlook

IDBI Capital kept a 'Buy' rating on the stock with a target price of ₹241 per share. The brokerage expects the company to gain from the Make in India ecosystem as tariff worries settle down and demand improves. Capacity utilisation is expected to move from around 65 percent in FY26 to 70 to 72 percent in FY27. The target price of ₹241 is set at 23 times the expected earnings for FY28.

Context

Brokerage firms regularly review company earnings and market trends to set target prices for stocks. Auto ancillary firms supply essential parts to vehicle makers and often track the broader health of the manufacturing sector.