This Market Leader stock which deals in the business of manufacturing of over 500 models of ride control products with products including shock absorbers, front forks, struts, and others was in focus after the company entered into a new segment with the Strategic Acquisition of Marelli Motherson Auto.
Share Price Movement
With a market capitalization of Rs. 417.95 Crores, the shares of Gabriel India Limited were down by 4 percent in the day’s trade touching a day’s low of Rs. 407.05 per share. The stock reiterated from the day’s high and was trading at Rs. 417.95 which is 1.47 percent lower than the previous closing price of Rs. 424.20 apiece. The stock has delivered a return of 12 percent which has outperformed the Nifty Index in the past year.
What happened
The company’s stock was in focus after the announcement of a Strategic Acquisition of the assets of Marelli Motherson Auto Suspension Parts Private Limited (MMAS) through an Asset Purchase Agreement. This acquisition of assets of Marelli Motherson can boost Gabriel India’s market position in the suspension business. The acquiring company is in the business of design, production, and marketing of passive shock absorbers, including semi-corner modules and gas springs, for cars and commercial vehicles.
Further, Gabriel is to enter a License Agreement and a Technical Assistance Agreement with Marelli Suspension Systems Italy to provide advanced suspension offerings to the OEMs. With this acquisition, Gabriel to acquire an additional 3.2 million of annual manufacturing capacity and Gas Spring Units of 1 Million.
Management Commentary
Anjali Singh, the Executive Chairperson of the ANAND Group and Gabriel India said. “This acquisition marks another milestone for Gabriel India, as it not only enhances our technological capabilities but also broadens our product portfolio and customer base. By integrating MMAS advanced suspension technologies through this acquisition, we are poised to strengthen our market position and deliver greater value to our shareholders,”
Jaisal Singh, the Vice Chairman of the ANAND Executive Board, Mergers & Acquisitions said, “This strategic acquisition is one more step in Gabriel’s journey as it further strengthens its capabilities, while consistently delivering growth to its shareholders for over sixty years”.
Q2YF25 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Gabriel India’s consolidated revenue from operations has increased by 18.86 percent year on year from Rs. 864 crore in Q2FY24 to Rs. 1,027 crore in Q2FY25 and increased by 8.44 percent quarter on quarter from Rs. 947 crore in Q1FY25.
The company’s consolidated net profit has increased by 36.95 percent year on year from Rs. 46 crores in Q2FY24 to Rs. 63 crores in Q2FY25. As compared to Q2FY25, the company’s net profit has increased by 8.62 percent quarter on quarter from Rs. 63 crore.
Company Overview
Gabriel India Limited was established in 1961. It is a leading manufacturer of ride control products like shock absorbers and struts while serving diverse automotive segments with multiple manufacturing plants across India. The company has a market share of 87 percent in EV 2W Sales.
Written By Santhosh S
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