Sharekhan has given Buy recommendation for Gabriel India with a target price of Rs. 160 in its research report issued on May 26, 2021
Sharekhan’s research report on Gabriel India
Q4FY2021 results were strong, aided by EBITDA margin expansion despite the sharp rise input cost. Net earnings are set to report a 52.9% CAGR over FY2021E-FY2023E, driven by a 17.3% CAGR during FY2021E-FY2023E and a 250 bps rise in EBITDA margin. The stock trades at attractive P/E multiple of 14x and EV/EBITDA multiple of 7.6x its FY2023E estimates.
Outlook
We maintain our Buy rating on Gabriel India Limited (Gabriel) with an unchanged PT of Rs. 160, factoring in recovery of automotive demand after wave-2 of COVID recedes and its preparedness to benefit from adoption of e-2W in India.