India’s Automobile and Auto Components industry is a major player, contributing over 7% to the GDP. With annual production exceeding 26 million vehicles, the sector supports more than 35 million jobs. The auto components industry alone is worth $57 billion, with exports totaling $15 billion.
With a market capitalization of Rs 7,137.67 crore, on Tuesday, the shares of Gabriel India Ltd closed in green at Rs 496.90 per share, increased by around 1.45 percent as compared to the previous closing price of Rs 489.80 apiece.
Financial condition:-
Looking into the company’s financial condition, revenue soared by 16 percent from Rs 737 crore in Q4FY23 to Rs 859 crore in Q4FY24, but during the same time frame, net profit magnified by 56 percent from Rs 34 crore to Rs 53 crore.
Matter Explanation:-
ICICI Direct, one of the well-known brokerages in India, gave a ‘Buy’ call on the auto stock with a target price of Rs 600, indicating a potential upside of 21 percent from Tuesday’s closing price of Rs 496.90 per share.
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Here is the reason behind the bullish potential upside target:
● The 2-W space in India’s auto industry shows promising recovery with Q1FY25 volumes up 20 percent YoY. While PV and CV spaces face growth caution, 2-W is expected to outperform due to revived domestic demand and improved export volumes.
● Gabriel, holding a 30 percent market share in the 2-W segment and 70 percent in Electric-2W, is set to benefit from this growth. Its strong presence in the EV market positions it well amid the government’s push for electric vehicles.
● Gabriel holds a 23% market share in the PV space, with 64 percent of its PV sales coming from the SUV sub-segment, which has a 35 percent market share in India. This positions Gabriel favorably in a growing and high-demand segment.
● Gabriel’s joint venture with Inalfa to manufacture sunroofs for SUVs aims to capture the premiumization trend. This strategic move increases its share in the SUV market and aligns with consumer preferences for premium features, benefiting Gabriel’s growth.
Company profile:-
Gabriel India has built a strong presence in all automotive client categories, including OEMs, aftermarkets, and exports. The company produces around 500 models of ride-control equipment. Its products include shock absorbers, struts, front forks, and more.
Written by:- Abhishek Singh
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