Sharekhan's research report on Gabriel India
Faster adoption of EVs in India would be the key growth driver for Gabriel, led by its increasing market share with its EV clients and first-mover advantage of developing EV suspension products that have light weight, noise reduction, and enhanced automation properties. Gabriel’s dominant position in suspension components is expected to remain intact, aided by its strong relationship with OEMs and brand recall in the aftermarket segment. Gabriel’s earnings are set to report a 42.8% CAGR over FY2022E-FY2024E, driven by a 18.3% revenue CAGR and a 220-bps expansion in EBITDA margin to 8.5% in FY2024E from 6.3% in FY2022. The stock trades at attractive valuations of 12.9x P/E multiple and 7.6x EV/EBITDA multiple its FY2024E estimates.
We maintain Buy on Gabriel India Limited (Gabriel) with a revised PT of Rs. 197, factoring in robust automotive demand, its preparedness to benefit from the adoption of EVs in India, and better valuations.
At 16:01 hrs Gabriel India was quoting at Rs 161.30, down Rs 2.70, or 1.65 percent.
It has touched an intraday high of Rs 169.15 and an intraday low of Rs 158.65.
It was trading with volumes of 93,648 shares, compared to its thirty day average of 80,276 shares, an increase of 16.66 percent.
In the previous trading session, the share closed down 1.18 percent or Rs 1.95 at Rs 164.00.
The share touched its 52-week high Rs 175.45 and 52-week low Rs 102.45 on 12 September, 2022 and 12 May, 2022, respectively.
Currently, it is trading 8.06 percent below its 52-week high and 57.44 percent above its 52-week low.
Market capitalisation stands at Rs 2,316.98 crore.
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