Anand Rathi's research report on Gabriel India
Broadly in-line with ARe of Rs1.128bn, Gabriel’s consolidated EBITDA grew 14% y/y to Rs1.129bn in Q2. We expect its consolidated revenue/EBITDA/EPS to clock 16/18/34% CAGR over FY25-28, driven by: (1) suspensions, as greater wallet-share is likely to drive 13% revenue growth; (2) M&As: new product-line expansion leveraging the Anand Group to drive further growth like its recent foray into fasteners and lubricants biz; and (3) group consolidation announcements. ~Rs40bn Anand group consolidated (refer pg 5). Further ~60% of Anand Group’s (~Rs120bn revenue) could boost earnings (currently i.e. Rs70bn sales exHL Mando Anand or ~35% of Anand group factored).
Outlook
We maintain BUY rating on the stock with a lower SOTP-based TP of Rs1,260 (from Rs1,440 earlier), valuing it at 32x on consolidated Sep’27e EPS of Rs31.9 (Rs1,020), future group consolidation (Rs140) and M&A potential (Rs100).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
