Gabriel India can move to Rs 55-56: Tulsian

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Gabriel India can move to Rs 55-56: Tulsian

Gabriel India can move to Rs 55-56 in next four-six months time, says SP Tulsian, sptulsian.com.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Gabriel India See messages about Gabriel India Gabriel India BSE | NSE 30/05/12 Are Mutual Funds betting on Gabriel India?

Gabriel India can move to Rs 55-56 in next four-six months time, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Gabriel India is into the shock absorber and making the front forks for the cars, for SUV, for commercial vehicles, for two-wheeler. The company has six plants in the country and has a technical collaboration with the Japanese company. Recently with the problems, which we are seeing in Japan, it is likely that this company will be used by the Japanese technical collaborator as an export hub. Probably it will cater more to the European market."

He further added, "If you see the financial performance, there was a slight drop in the bottom-line, maybe to the extent of about 10%. In FY10, it has posted an EPS of close to about Rs 4. FY11 is going to see an EPS of close to about Rs 4 with top-line of Rs 1,000 crore. In FY12, this will be used as an export hub by the technical collaborator. The kind of growth we are seeing expected to see in the auto sector since they cater to all these actions two-wheeler, four-wheeler commercial vehicle, the pricing power is likely to come back to the company."

"Five-six months back, the share has moved to about more than Rs 65. So, maybe with better financial indications coming in from one quarter, share could easily move back to Rs 55-56, maybe in next four-six months time. So, pricing power is returning back and looking more of the topline, bottomline ramp up in the next year."