Keep Gabriel India in portfolio: Aashish Tater

Keep Gabriel India in portfolio with long term view, says Aashish Tater, Fort Share Broking.

Tater told CNBC-TV18, "Gabriel India is what was Munjal Showa for us when it used to be over at Rs 50 and we recommended a target of Rs 100-120 from two and a half years perspective for Munjal Showa. This is into the similar business shock absorber and we feel this has got equal potential. We are bullish on Munjal Showa then why not be bullish on Gabriel India also."
He further added, "If you take a call, the company would do close to Rs 1,300 crore of top-line and close to Rs 64 crore of profit for this fiscal. That means there would be lot of potential in terms of PE getting upgraded when I compare with Munjal Showa. So on the longer timeframe, we feel that both the companies will get a better PE of approximately 8.5 times from next one year perspective and thus this particular stock has a potential to go to Rs 60-62."
"Take a technical snapshot of this particular company. Every time it comes to that Rs 40 odd mark the stock goes and bounces back to that Rs 46-47 levels. It clearly shows there is a strong accumulation going on and if I take a similar call around at Rs 40 the dividend roughly works out to be close to 3% and for this fiscal we expect Rs 1.6 as dividend that will be close to 4%."
"For Munjal Showa also we took the similar call where the dividend yield used to be work out at 4-4.5% and then the stock got re-rated with expansion. So Gabriel is on the similar chart pattern. From the longer term frame a stock which should be part of one