Gabriel India extends rally, rises 80% in 7 straight session; Elara Securities sees more upside - check details

Gabriel India extends rally, rises 80% in 7 straight session.

Shares of Gabriel India continued their upward momentum on Wednesday, closing nearly 16 percent higher and marking a 79 percent gain over seven consecutive sessions.

The rally follows the company’s announcement of a strategic business restructuring. On Monday, Gabriel India said it would merge its subsidiary Anchemco India Pvt Ltd with Asia Investments Pvt Ltd, another group entity. Subsequently, the automotive business of Asia Investments will be demerged and merged into Gabriel India.

As part of the arrangement, Gabriel India will issue 1,158 equity shares of face value Re 1 for every 1,000 equity shares of face value Rs 10 held in Asia Investments.

Anchemco manufactures brake fluids, radiator coolants, and diesel exhaust fluid, and supplies to leading automobile companies such as Tata Motors, Ashok Leyland, VE Commercial Vehicles, Mahindra Trucks and Buses, and Daimler.

Brokerage Elara Securities has also raised its target price on Gabriel India to Rs 1,115 from Rs 666, citing the company’s move from a single-product focus to a multi-product strategy.

The revised target follows the announcement of the composite scheme of arrangement involving Gabriel India, Asia Investments Pvt Ltd, and Anchemco India Pvt Ltd.

The stock rose despite weakness in the headline indices. The Sensex closed lower by 287.60 points or 0.34 percent at 83,409.69. During the day, it dropped 546.52 points or 0.65 percent to 83,150.77. The Nifty declined by 88.40 points or 0.35 percent to settle at 25,453.40.

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