If you invest in the stock market or follow auto stocks, you’ve likely heard of Gabriel India Limited. Recently, brokerage firm Anand Rathi has issued a BUY rating on this auto ancillary giant with a target price of ₹1,400 per share — indicating a potential 52% upside from current levels. Let’s understand why this stock is attracting so much attention.
Gabriel India’s Business Model
Gabriel India is a leading manufacturer of shock absorbers, suspension systems, and ride control products, catering to passenger vehicles, two-wheelers, and commercial vehicles. Established in 1961, the company is part of the Anand Group, one of India’s top automotive component manufacturers.
Key Highlights
- Market Leader: Holds a 75% market share in the commercial vehicle segment.
- Major Clients: Supplies to top automakers like Tata Motors, Ashok Leyland, and Mahindra & Mahindra.
- EV Expansion: Actively expanding into electric vehicle (EV) components, adhesives, and global auto parts markets.
This diversified presence positions Gabriel India as a resilient player in the evolving mobility ecosystem.
Anand Rathi’s Analysis and Target Price
Brokerage house Anand Rathi has placed a BUY rating on the stock with a target price of ₹1,400, broken down into three key value drivers:
- Core Business (FY27 Earnings): ₹1,040
- Group Consolidation Potential: ₹260
- Mergers & Acquisitions (M&A): ₹100
Projected Growth (FY25–FY27)
- Revenue Growth: 22% CAGR
- Profit Growth: 53% CAGR
- EPS Growth: 38% CAGR
These projections reflect strong operational efficiency, growing market share, and robust demand across vehicle segments.
Financial Performance and Risk Factors
- Current Price (as of July 9, 2025): ₹922
- 52-Week High: ₹1,011 (down 8.8%)
- 1-Year Return: +85.53%
Quarterly Comparison (Q4 FY24 vs Q4 FY25):
- Revenue: ₹917 crore → ₹1,073 crore (+17% YoY)
- Net Profit: ₹49 crore → ₹64 crore (+30.6% YoY)
The financial trend shows consistent improvement in both top-line and bottom-line performance.
Key Risk Factors
- Heavy dependence on the auto sector’s performance.
- Uncertainty in EV adoption and execution success.
- Increasing competition in the auto component space.
Conclusion
Gabriel India Limited represents a strong growth story within India’s auto ancillary sector, backed by leadership in suspension systems, diversified clients, and a strategic push into EV components.
While Anand Rathi’s ₹1,400 target signals a solid 52% upside potential, investors should remain mindful of market volatility and sector-specific risks.
For long-term investors seeking exposure to a market leader with expanding margins and EV opportunities, Gabriel India could be a compelling addition — provided due diligence and research are done before investing.
