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Last Updated : Mar 07, 2019 02:45 PM IST | Source: Moneycontrol.com

Hold Gabriel India; target of Rs 155: Geojit

Geojit recommended hold rating on Gabriel India with a target price of Rs 155 in its research report dated February 28, 2019.

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Geojit's research report on Gabriel India


Gabriel India Ltd (GIL) is one of the leading manufacturers of ride control products viz Shock Absorbers, Front Forks in automotive segments, with a market share of 25 %( 2W, PV) & 75 % (CV). Q3FY19 revenue grew by 14% on the back of strong orders from two wheeler manufacturers (19%YoY) and higher export share. However share from the PV segment declined by 9%YoY. EBITDA margin contracted by 60bps owing to change in product mix and elevated RM cost (+190bps). The new Capex initiated for supplying Front Fork to Honda Motorcycle & Scooter ltd (HMSI) and backward integration of Piston Rods is expected to commence operation from Q4FY20.


Outlook


We value GIL at P/E of 15x as we roll forward to FY21E with a revised target of Rs.155 and downgrade to HOLD.


For all recommendations report, click here


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First Published on Mar 7, 2019 02:45 pm
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