New Delhi, Oct. 2 -- Small cap stock Rolex Rings has received a bullish initiation from InCred Equities, which believes the auto component and bearing-ring maker is moving from a prolonged period of muted growth into a fresh operating upcycle.

The brokerage initiated coverage with a Buy rating and a target price of Rs.251, implying an upside of 28% from the last trading price of Rs.196.36.

The brokerage's thesis rests on the view that the company's flat revenue performance over FY22-FY26 was largely driven by temporary demand and external disruptions rather than deterioration in its underlying franchise.

InCred expects a recovery to be supported by improving US auto component exports, increasing European business through China+1 sourci...