Buy Gabriel India; target of Rs 260: ICICI Direct

ICICI Direct is bullish on Gabriel India recommended buy rating on the stock with a target price of Rs 260 in its research report dated July 20, 2023.

Broker Research

July 20, 2023 / 19:05 IST

Buy

26 Aug, 2025 12:21

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ICICI Direct's research report on Gabriel India

Gabriel India has been a prominent shock absorber player domestically and has been 2- W/3-W heavy with this segment constituting 67% of sales in FY21 with PV constituting 21% of sales. In the recent past however, GIL, has gained traction in the PV space with this segment now constituting ~23% of its sales with intent to raise it to ~30% over next few years. Interestingly, within PV space the company realizes ~64% of sales from the SUV sub-segment which is witnessing healthy demand traction with its domestic market share in SUV domain pegged at ~35%. GIL is presence with all leading OEMs with prominent nameplates being Mahindra Thar, XUV 700, Maruti New Brezza, Grand Vitara among others. Increasing share of PV-SUV space in GIL’s overall sales pie is structurally positive, given the underpenetrated nature of PV category domestically thereby providing growth longevity. EV agnostic product profile and vision to be among the top 5 shock absorber players globally by 2025 are other structure positives providing long term comfort.

Outlook

We assign BUY rating on Gabriel India amidst EV agnostic product profile, gaining prominence in PV-SUV space, foray into premium segment offering (i.e., sunroof systems); leadership position in E-2W/3W space (~≥ 80% market share in high-speed scooters), healthy RoCE profile & debt free B/S. We assign a target price of Rs 260 for GIL valuing it at 20x P/E on FY25E EPS.

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