Reduce Gabriel India; target of Rs 1125: Choice Institutional Equities

Choice Institutional Equities recommended reduce rating on Gabriel India with a target price of Rs 1125 in its research report dated November 14, 2025.

Broker Research

November 14, 2025 / 11:22 IST

Reduce

26 Aug, 2025 12:21

Volume

Todays L/H

Choice Institutional Equities's report on Gabriel India

Strengthening Core with Strategic Diversification into Mobility Solutions: GABR is strategically transitioning from a suspension-centric company to a diversified and innovation-driven mobility solutions-provider. This is evidenced from GABR’s ongoing restructuring to significantly strengthen its financial position through the integration of high-margin, growth-oriented businesses with its core operations. The inclusion of Anchemco, along with strategic stakes in Dana Anand, Henkel Anand and ACYM, is expected to drive meaningful revenue expansion by adding both, scale and product diversity, with an estimated revenue CAGR of 20.0% from FY25–28E. GABR has also entered into a new joint venture (JV) with SK Enmove, a leading Korean corporation. The company has a 49% stake in this JV, business scope of which includes engineering, manufacturing and marketing of automotive and industrial lubricants. We believe GABR is wellpositioned to benefit from the continued strong performance of its core business along with these new segments, allowing diversification and reducing single product dependency.

Outlook

We revise our FY26/27E EPS estimate downwards by 5.5%/1.6% and arrive at our target price of INR 1,125. We value the company at 30x (maintained) on the average of FY27/28E EPS. We maintain our ‘REDUCE' rating on the stock, given the recent run-up in the stock price, presenting limited upside potential from the present level.

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