Multibagger Auto Ancillary Stock Showing Upside Potential, Buy For TP Of Rs 384, Says Sharekhan

Renowned brokerage firm Sharekhan has come up with a Buy recommendation on Gabriel India Ltd., an Auto Ancillary company. The brokerage maintains Buy rating on the stock with a revised target price of Rs 384, owing to substantial brand equity, market share expansion strategy, and profitability focus. The stock is showing a potential upside of up 17%, considering the given target price and the current market price.

"Expecting a rise in content per vehicle due to increase in market share in the electric car sector. On track sunroof project, expansion in overseas markets, margin accretive Inorganic growth strategies and a renewed focus om exports contribute to the positive outlook," the brokerage said.

According to brokerage, "With continued dominance with existing customers, Gabriel is continuously expanding its customer base and focussing on increasing wallet share with its existing customers. Given Gabriel enjoys a market leadership position in the domestic CV segment, it has started exploring business opportunities in overseas CV segment. Post gaining a healthy market share (~70%) in the electric two-wheeler space, the company is aiming to expand its presence in the electric car space."

It added, "We believe that a sizeable market share in the electric car space would result in sharp rise in content per vehicle, given electric car carries additional weight of batteries and hence increases the requisite of more durable and high performing shock absorbers compared to existing shock absorbers. Gabriel is enhancing its technological expertise to cater to export market as it is targeting 10% of revenues to come from the export markets in the next few years compared to 4% currently. After collaboration with Inalfa for manufacturing of sunroof systems in India, the management is optimistic on its diversification strategy and still open for any suitable inorganic growth opportunity. Its sunroof project is on track and the management is continuously looking for inorganic growth opportunities in power train agnostic space."

Commenting on the Buy call, the brokerage said, "With introduction of earning estimates for FY26E, we maintain our Buy rating on the stock with a revised PT of Rs 384. owing to its strong brand equity, market share expansion strategy, focus on profitability, expectation of rise in content per vehicle, and inorganic growth strategies along with renewed focus on exports."

Stock Performance & Overview

The shares of Gabriel on Friday last traded 1.68% higher at Rs 330 apiece on the BSE. The stock jumped 5.34% in 1 week. It gave 73.18% robust return in 3 months, and 143.63% multibagger return in 6 months, respectively. It gave 122.63% multibagger return in 1 year, and 123.98% in positive return in 2 years. It gave 213.22% positive return in 3 years, and 175.04% in 5 years.

The stock's 52-week high price is Rs 338.35 apiece and its 52-week low price is Rs 129.50 apiece on the BSE. It has a market valuation of Rs 4,748.87 Crore.

About - Gabriel India Ltd.

Gabriel is the flagship company of the Anand Group and is one of the leading manufacturers of suspension components. The company's portfolio includes a range of ride-control products: shock absorbers, struts, and front forks for every automotive segment. The company's business units include CV and railways, 2W and 3W, passenger cars, and aftermarket. Gabriel manufactures front forks and rear shock absorbers for 2W; McPherson struts and shock absorbers for passenger cars; cabin dampers, seat dampers, and suspension shock absorbers for CVs; and shock absorbers for railway coaches. The company's ride-control products for various segments are marketed across the globe. Gabriel has seven manufacturing facilities and four satellite facilities.

Disclaimer - The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.