Gabriel India Ltd. share price target

We revise our target to Rs 130 and our stance from Buy to Hold maintaining the valuation at 16x FY23E, an upside of 5%.

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...

We revise our target upwards to Rs 128 and recommend Buy (earlier target Rs 114) valuing the company at 16x FY23E.

Over the longer term, GIL retains its ambition to be a top five shock absorber player globally. Healthy topline outlook, potential for margin improvement, strong financials (debt free b/s, double digit return ratios) and EV opportunity help us remain positive on the stock. We introduce FY23E numbers, upgrading it from HOLD to BUY with a revised target price of | 150 (i.e. 20x...

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...

During the quarter, 2W segment constitutes 70% of the revenue mix was supported by strong order back log and robust new order coming from the entry segment motorcycle. Focus on export market with a share of 20% by FY23 from current 5%....

We maintain a HOLD on the stock with a target price of Rs. 900. (3.1x FY23E BV).

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%....