The company is the largest producer and supplier of high-quality Ride Control Products such as shock absorbers, Struts, and Front forks for the Indian Automotive Industry catering to Passenger and Commercial vehicles.
Gabriel India Ltd shares were trading at Rs 319.20 on the National Stock Exchange on Friday, up 0.87 percent, and the company has a market capitalization of Rs 4,582 crore.
Gabriel is a frontrunner in the manufacture of suspension components (shock absorbers and struts) in India. With a 32% market share in the 2-wheeler and 3-wheeler categories, a 24% market share in the Passenger vehicle segment, and an 89% market share in the commercial vehicle category.
Gabriel is also the leading manufacturer of shock absorbers for new-generation vehicles in the 2 & 3-wheeler segment in India, including Electric Vehicles(EVs).
Gabriel has initiated product design for EV OEMs such as OLA Electric, Okinawa, Ather Energy, and TVS in the e-2W category, and Bajaj, M&M, and Tube Investment in the e-3W category.
As of FY22, the Company is the market leader in the aftermarket for ride control products and has a market share of more than 40% in India, as well as a logistics network that includes 664 distributors and 12,000 retailers.
Gabriel India has a 35% market share in overall utility vehicle sales. Gabriel has received new programs such as the Jimny and the electric Citroen C3.
To strengthen product development capabilities, the company has longstanding technological alliances with worldwide giants such as Yamaha Motor Hydraulic System Co Ltd, KYB Spain, and Kayaba Industry Co.
As of FY2022, the Company earned 95 percent of its revenue from domestic sales and 4 percent from export markets.
The company’s net cash position in Q1FY24 was Rs. 323.7 crore, compared to Rs. 298.4 crore in Q4FY23. Furthermore, Capex for R&D was Rs. 13.6 crores in Q1FY24, while export income climbed from Rs. 28.6 crores in Q4FY23 to Rs. 31.6 crores in Q1FY24.
The company’s revenue climbed 12 percent year on year, rising from Rs 720 crore in Q1FY23 to Rs 805 crore in Q1FY24. Similarly, net profit increased by 31 percent, rising from Rs 32 crore to Rs 42 crore.
The railway sector provides 1 percent of the company’s revenue. While the firm has received excellent exposure in the railway industry this fiscal year, Gabriel is aiming for 10 percent of its sales to come from export markets in the next five years, up from roughly 4 percent.
Written by Omkar Chitnis
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