Buy Gabriel India; target of Rs 558: Sharekhan

Sharekhan's research report on Gabriel India

Gabriel reported PAT at Rs. 52.7 crore (+12.2% y-o-y) against our estimate of Rs. 54 crore on 3% beat in revenue estimates and 50 bps y-o-y expansion in gross margin. The Sunroof project has delivered EBITDA margin of 16.6% in Q2FY2025 against 14% in Q1FY2025.

Outlook

We maintain BUY with an unchanged PT of Rs. 558, driven by its strong brand reputation, expansion strategies, profitability focus, anticipated rise in content per vehicle, inorganic growth initiatives, and enhance export potential. The stock trades at a P/E multiple of 20.6x and EV/EBITDA multiple of 13.2x its FY2027E.

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