Gabriel India Ltd. share price target

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

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...

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 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....