Buy Gabriel India; target of Rs 660: Anand Rathi

Anand Rathi's research report on Gabriel India

We visited Gabriel’s plant and attended its management meet on Thursday in Pune. The company’s change in strategy by way of entry into the high-growth ‘sunroof’ product line is positive and would be a major value driver. Further, diversification into new product line partnerships/acquisitions would keep growth strong. After the recent acquisition of MMAS, another two-three M&As are expected in threefour years. The company is our top pick in smallcap ancillaries.

Outlook

We expect robust, 16%/19%, consolidated revenue/EBITDA CAGRs over FY25-27. We recommend a Buy at a TP of Rs 660 (earlier Rs 650), 28x consolidated FY27e EPS. Our FY25e-27e consolidated EPS is slightly higher due to better Q4 FY25 estimates.