Background: Gabriel India Ltd.(GIL) is the flagship company of Anand Group, offering the widest range of ride control products including shock absorbers, struts, and front forks. The Company commenced operations in 1961, with a single plant in Mulund, Mumbai and has grown manifold, currently it has nine manufacturing facilities spread across the country with strong 500 dealer network and 10,000 retail outlets. The company has strong R&D; capabilities with over 43 patents in products and...

The 2-W segment is being considered for GST relief by the government, as per media reports. Currently, 2-W (along with rest of auto industry) are taxed at 28%. The industry has long called for at least a temporary rate reduction to 18% to mitigate rise in costs in the past few quarters (due to introduction of safety features like ABS/CBS, implementation of BS-VI norms, increase in registration fees & road tax by some states). Such a cut is viewed as having the potential to improve sentiment and thereby spur demand. However, our interaction with leading 2-W companies suggests that for the cut to result in...

The new Capex initiated for supplying Front Fork to Honda scooter & backward integration of Piston Rods has commenced operation from Q1FY21. Current order book stands at 80% on 2W. Focus on export market with a share of 20% by FY23 from current 5%....

GIL is domestic market leader in automotive suspension segment (comprising products like front forks, shock absorbers, struts) commanding 25% market share in 2-W, 15% in PV and 75% in CV & Railways). The three divisions formed 67%, 20%, 12% of revenues in FY20, respectively. In months following Covid-19, domestic 2-W space has been doing relatively well, with dispatches at key OEMs ramping up in response to improving demand. Enhanced awareness around social distancing is expected to continue to benefit personal mobility vs. public transport that would benefit...

Gabriel reported a relatively better Q4, with revenue down 17% at Rs425 cr (v/s expectation of 20% decline), Gross margins improved by 230 bps YoY on account of operational efficiencies

Heavy 2-W exposure to help limit topline damage Speedier aftermarket growth necessary to aid margin recovery The OEM channel has formed the lion's share of GIL's revenues over the years at ~83-85%, with replacement (aftermarket) and exports accounting for 11-13% and ~2-4%, respectively. Amid short-term supply side and longer term demand side issues for OEMs, ancillaries with a firm aftermarket channel stand to gain through (a) volume growth and (b) better pricing because of its B2C nature. GIL does command strong ~40% market share...

Background: Gabriel India Ltd.(GIL) is the flagship company of Anand Group, offering the widest range of ride control products including shock absorbers, struts, and front forks. The Company commenced operations in 1961, with a single plant in Mulund, Mumbai and has grown manifold, currently it has nine manufacturing facilities spread across the country with strong 500 dealer network and 10,000 retail outlets. The company has strong R&D; capabilities with over 43 patents in products and...

Background: Gabriel India Ltd.(GIL) is the flagship company of Anand Group, offering the widest range of ride control products including shock absorbers, struts, and front forks. The Company commenced operations in 1961, with a single plant in Mulund, Mumbai and has grown manifold, currently it has nine manufacturing facilities spread across the country with strong 500 dealer network and 10,000 retail outlets. The company has strong R&D; capabilities with over 43 patents in products and process. GIL has technical collaboration with global majors such as KYB (Japan), KYBSE (Spain),...

Gabriel India reported another quarter of subdued performance as Auto industry slowdown weighed on revenue and margins; Total revenues came in at Rs 473 cr (?13% YoY & ?9% QoQ) due to sharp drop in PV segment (down 38% YoY, as compared to an industry decline of ~20% YoY)

Gabriel India reported muted numbers for Q1FY20 due to across the board slowdown in Auto industry; Total revenues came in at Rs 517 cr (?0.5% YoY & ?1.3% QoQ), EBIDTA came in at Rs 43 cr (?15% annually & ?16% QoQ) with EBIDTA margin at 8.3%

Sector: Auto-ancillary /Mid-Cap | Earnings Update 4QFY19 Background: Gabriel India Ltd.(GIL) is the flagship company of Anand Group, offering the widest range of ride control products including shock absorbers, struts, and front forks. The Company commenced operations in 1961, with a single plant in Mulund, Mumbai and has grown manifold, currently it has nine manufacturing facilities spread across the country with strong 500 dealer network and 10,000 retail outlets. The company has strong R&D; capabilities with over 43 patents in products and process. GIL has technical collaboration with global majors such as KYB (Japan), KYBSE...

EBITDA margin contracted by 260bps due to higher material cost, lower product mix and Rupee depreciation. Despite getting new orders from Royal Enfied Classic and Honda for supplying of Front fork, lower sales in the passenger vehicle segment is deteriorating the product mix. 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....

Gabriel India reported muted set of results for Q4FY19; it reported Total revenues of Rs 510 cr (?3% YoY & flat QoQ)), the EBIDTA of Rs 37 cr (?24% annually & ?19% QoQ) with EBIDTA margin at 7.2% (contraction of 257 bps on annual comparison).

Results miss estimates marred by higher raw material costs: Gabriel India Limited (Gabriel) results were below ours as well as the street estimates. The revenue growth moderated sharply to 3% y-o-y (revenues were in line with estimates) due to a weak demand from OEM's, especially the 2wheeler segment and market share loss in the PV space. Operating margins...

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)....

Gabriel India continued with its stellar set of performance; it reported Total revenues of Rs 544 cr (?15% YoY & ?5%QoQ)), the EBIDTA of Rs 54 cr (?14% annually & ?5% QoQ) with EBIDTA margin at 9.9% (flat on annual comparison).

Performance Reflects Automobile Industry Growth: For Q2FY19, Gabriel reported revenue of Rs. 5415 Mn, up by 14.8% YoY, which is in-line with our estimate. The automobile industry production grew by 13.3% YoY during H1FY19 and we think this has translated into higher revenue for the quarter as well.

Gabriel India (GIL) reported a strong 2QFY19 performance with sales, EBITDA and PAT beating our estimates by 2%/2%/4%, respectively. The company reported strong double-digit growth in net sales on the back of double-digit growth in two-wheelers and commercial vehicles - ~45% in case of commercial vehicles and ~20% in case of two-wheelers, while growth in the passenger vehicle (PV) segment was marginal. Net sales at Rs5.41bn grew by a strong 15% YoY and were the highest-ever for the company. EBITDA at Rs515mn also grew in strong double digits, the highest-ever for the company. EBITDA margin at 9.5% remained flat QoQ and was in line with our estimate. Gross margin at 27.6% fell 100bps QoQ, given the higher share of OEMs, rise in commodity prices and increase in customs duty on...

Gabriel India Ltd (GIL) is one of the leading manufacturers of ride control products viz shock absorbers, front forks and struts having a market share of 25 % in two wheelers & cars and 75% in trucks. Strong outlook on auto coupled with GILs leadership position will help to reap robust OEM revenue (83% current mix) going forward. Revenue share from 2W segment to improve 200bps to 58% by FY20 supported by new client addition and order wins. Operating margin to improve by 120bps over FY18-20E to 10.5% led by...