Sharekhan has given Buy recommendation for Gabriel India with a target price of Rs. 160 in its research report issued on Mar 12, 2021
Sharekhan’s research report on Gabriel India
Gabriel is well-positioned to gain from the government’s push on rapid adoption of EVs, especially in 2W and 3W segments, where it is developing products with leading players. Net earnings set to clock a 55.2% CAGR over FY21E-23E, driven by an 18% CAGR during FY2021E-23E and a 270 bps rise in EBITDA margins. Stock trades at attractive P/E multiple of 13.1x and EV/EBITDA multiple of 7.1x its FY2023E estimates.
We re-initiate our coverage on Gabriel India Limited (Gabriel) with Buy rating and a PT of Rs. 160 owing to its leadership position and brand recall in the suspension components segment; company would also benefit from rising automotive demand.