Synopsis:
A small-cap company’s shares declined over 25 percent in the last 6 trading sessions, here’s why?
A small-cap company that manufactures over 500 models of ride control products, is in the spotlight today after it fell by 25 percent in the past 6 trading sessions. Read the article below for detailed insights.
With a market capitalization of Rs. 14,416.11 crore, the shares of Gabriel India Limited is trading at Rs. 994.90, up by 1.29 percent from its previous closing price of Rs. 982.20 per equity share.
What’s the News?
Shares of Gabriel India Ltd have fallen for six consecutive sessions, dropping nearly 25 percent, mainly due to concerns over its sunroof business, which has seen stagnation from a lack of new order wins. This has raised doubts about the company achieving its earlier target of Rs. 1,000 crore sunroof revenue by FY30, likely delaying it by one to two years.
Additionally, analyst sentiment has turned cautious, with downgrades from multiple brokerages including Arihant Capital Markets, Asit C. Mehta Investment, and SMIFS Ltd with ‘Sell’ calls rising to 30 percent. While the company remains strong in its core two-wheeler and passenger vehicle segments, near-term investor concerns over sunroof growth and increasing competition in the EV two-wheeler market where Gabriel has market share of 65–70 percent, have pressured the stock.
About the company
Gabriel India Limited, headquartered in Pune and incorporated in 1961, manufactures and sells ride control products for the automotive industry in India, the Netherlands, and internationally. Its offerings include shock absorbers, front forks, strut assemblies, semi-active suspension systems, dampers for trains and locomotives, and various suspension and braking components.
The company also produces automotive parts such as macpherson struts, gas springs, brake pads, drive shafts, alloy wheels, and e-bikes, along with tubes, piston rods, and sinter parts. It sells products through agents, retailers, and distributors, and also exports globally. Gabriel India Limited is a subsidiary of Asia Investments Private Limited.
As of September 2025, the company’s shareholding pattern shows that promoters hold 55 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 6.5 percent, while Domestic Institutional Investors (DIIs) own 15.74 percent. The public shareholding stands at 22.76 percent, reflecting a healthy level of retail participation in the company.
Financial Outlook
The company reported a revenue of Rs. 1,066 crore in Q2FY26, up 15.3 percent YoY from Rs. 924 crore in Q2FY25 and 8.3 percent QoQ from Rs. 985 crore in Q1FY26. Net profit for the quarter rose to Rs. 61 crore, a 15.1 percent increase YoY from Rs. 53 crore and an 8.9 percent increase QoQ from Rs. 56 crore, reflecting steady growth in both revenue and profitability.
A return on equity (ROE) of about 19.4 percent, a return on capital employed (ROCE) of about 26.1 percent and debt to equity ratio at 0.02 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 63.1x which is higher as compared to its industry P/E 32x.
Written By Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
