Gabriel India Ltd
Gabriel India Ltd
Consumer DiscretionaryGabriel India is part of ANAND Group. The Company has established a significant presence across all automotive customer segments, including OEMs, Aftermarket, and exports. Company manufactures over 500 models of ride control products. [1] Its products include shock absorbers, struts, front forks and others.[2]
Gabriel India is a high-quality compounder with 33% profit CAGR over 5 years and near-zero debt, but at a PE of 65.1x and 12x book value, the stock prices in significant future growth. With 80% analyst buy ratings and strong fundamentals, accumulate on dips rather than at current elevated levels.
Key Fundamentals
SmallcapAuto ComponentsAutomobilesTechnical Indicators
Key Insights
Strengths
4- Company is almost debt free.
- Company has delivered good profit growth of 33.4% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 27.1%
- Promoter holding has increased by 8.55% over last quarter.
Weaknesses
1- Stock is trading at 13.4 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Gabriel India is a high-quality compounder with 33% profit CAGR over 5 years and near-zero debt, but at a PE of 65.1x and 12x book value, the stock prices in significant future growth. With 80% analyst buy ratings and strong fundamentals, accumulate on dips rather than at current elevated levels.
- Exceptional profit growth at 33% CAGR over 5 years, well above the auto-ancillary sector average of 15-18%
- Virtually debt-free balance sheet provides resilience through economic cycles and capacity for future capex
- Consistent ROE of 20% in the last year and 18-20% over 3-5 years indicates superior capital allocation
- Promoter holding increased by 8.55% in the last quarter, signaling strong insider confidence at current valuations
- Stock has delivered 102% return in 1 year and 85% CAGR over 3 years, reflecting strong market momentum
- Revenue growth of 16% TTM with improving profit margins suggests operating leverage is kicking in
- Healthy dividend payout ratio of 27.1% demonstrates shareholder-friendly capital return policy
- 80% of analysts rate it a Buy with zero Sell ratings out of 5 total coverage analysts
- PE ratio of 65.1x is extremely stretched, trading at nearly 3-4x the sector average PE of 18-25x for auto components
- Price-to-book of 11.99x leaves minimal margin of safety; even a slight earnings miss could trigger sharp correction
- Dividend yield of just 0.17% offers negligible income cushion against potential capital loss
- 10-year sales CAGR of only 11% suggests the business is not a structural high-growth story despite recent acceleration
- Stock CAGR of 85% over 3 years has far outpaced profit CAGR of 24%, indicating valuation expansion that may not sustain
- 10-year profit CAGR of 13% is modest, and recent 33% growth may be cyclical rather than structural
- Market cap of Rs 16,841 Cr for an auto-ancillary firm implies the market is pricing in flawless execution for years ahead
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Competitive and commodity risks Jun 09
Motilal Oswal flagged rising competitive intensity, commodity price fluctuations, technology changes, and geopolitical headwinds causing end-market slowdown as key risks to growth trajectory.
- Bear-case implies limited downside buffer Jun 09
Motilal Oswal's bear-case target of ₹924 suggests only 6% downside from current levels, but valuation at 27.1x FY28E EPS leaves limited margin of safety if execution falters.
- Motilal Oswal initiates with Buy Jun 09
Motilal Oswal initiated coverage with a Buy rating and ₹1,266 target price (29% upside), with a bull-case target of ₹1,676 implying 71% upside. Stock rallied 5.5% to ₹1,035 on the day.
- Strong earnings growth outlook Jun 09
Brokerage estimates consolidated revenue/EBITDA/PAT CAGR of 22%/23%/55% over FY26-28E, with core RoCE expected to expand 800 bps to 37.7% and RoE to 28.4% by FY28.
- FY26 profit up 14.8% May 27
Gabriel India reported FY26 net profit of ₹2,432 million (up 14.8% YoY) on revenue of ₹42,330 million (up 16.2% YoY), demonstrating sustained operating momentum.
- Anand Group restructuring unlocks value Jun 09
Integration of Dana Anand (30-40% market share in PV/CV segments) and Henkel Anand plus JVs like Enmove and Jinhap being routed through Gabriel, with unlisted group ventures contributing ~₹230 crore PAT.
- New OEM wins and diversification Jun 09
Hero MotoCorp production starting H2FY27, new platform wins at Maruti Suzuki and Toyota EV model, plus expansion into sunroofs, solar dampers, fasteners, and e-mobility products.
- Robust balance sheet and cash flow Jun 09
Net cash position with lean 27-day working capital cycle, 10-year CFO/EBITDA of 81%, FCF/PAT of 61%, and 30%+ core RoCE with consistent 20%+ dividend payout.
- Overwhelming analyst consensus Jun 09
Of 12 analysts covering the stock, 9 have Buy ratings, 2 Hold, and 1 Sell. Stock has delivered 64% returns over the past year and 1,040% over 10 years.
- Q4FY26 conference call uploaded May 28
Gabriel India uploaded its Q4FY26 investor conference call audio recording to the company website under the Investor Information section.
- Senior leadership appointments May 27
Prabhu Lakshmi Pathy appointed Sr VP and Chief Manufacturing & Quality Officer effective June 1, 2026; R Vasudevan redesignated as President and Chief Commercial Officer.
- Auditors re-appointed for FY27 May 27
Board approved re-appointment of statutory auditors for five years (pending shareholder approval), along with cost and internal auditors for FY27.
TL;DR: Gabriel India is in a strong bullish phase, driven by Motilal Oswal's Buy initiation with 29% upside target and a structural transformation from a pure suspension player to a diversified mobility platform under the Anand Group umbrella. FY26 financials are solid with 14.8% profit growth, and the 55% PAT CAGR estimate through FY28 reflects aggressive restructuring and new OEM wins. Key risks remain competitive intensity and commodity volatility, but the net-cash balance sheet and diversification strategy provide resilience. The trend is clearly improving with analyst consensus overwhelmingly bullish and multiple growth catalysts lined up through FY28.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 737 | 806 | 864 | 814 | 859 | 864 | 924 | 924 | 931 | 985 | 1,066 | 1,072 | 1,111 |
| Expenses | 685 | 737 | 791 | 744 | 781 | 786 | 845 | 846 | 845 | 897 | 974 | 979 | 1,014 |
| Operating Profit | 52 | 69 | 74 | 70 | 78 | 78 | 79 | 78 | 86 | 88 | 92 | 92 | 97 |
| OPM % | 7% | 9% | 9% | 9% | 9% | 9% | 9% | 8% | 9% | 9% | 9% | 9% | 9% |
| Other Income | 6 | 5 | 5 | 5 | 8 | 7 | 7 | 9 | 7 | 7 | 9 | 11 | 10 |
| Interest | 1 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 2 | 2 |
| Depreciation | 13 | 14 | 14 | 14 | 14 | 15 | 16 | 16 | 16 | 19 | 19 | 19 | 19 |
| PBT | 45 | 58 | 63 | 59 | 70 | 69 | 70 | 71 | 75 | 74 | 81 | 81 | 86 |
| Tax % | 25% | 26% | 25% | 28% | 25% | 26% | 25% | 24% | 28% | 24% | 25% | 19% | 28% |
| Net Profit | 34 | 42 | 47 | 43 | 53 | 51 | 53 | 54 | 54 | 56 | 61 | 66 | 61 |
| EPS in Rs | 2.35 | 2.96 | 3.27 | 2.99 | 3.67 | 3.56 | 3.67 | 3.76 | 3.76 | 3.88 | 4.22 | 4.57 | 4.26 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,437 | 1,431 | 1,521 | 1,833 | 2,076 | 1,870 | 1,695 | 2,332 | 2,972 | 3,343 | 3,643 | 4,233 |
| Expenses | 1,320 | 1,302 | 1,374 | 1,662 | 1,898 | 1,732 | 1,592 | 2,186 | 2,758 | 3,053 | 3,321 | 3,864 |
| Operating Profit | 117 | 129 | 146 | 171 | 178 | 138 | 103 | 146 | 214 | 290 | 322 | 369 |
| OPM % | 8% | 9% | 10% | 9% | 9% | 7% | 6% | 6% | 7% | 9% | 9% | 9% |
| Other Income | 3 | 2 | 6 | 7 | 9 | 10 | 24 | 26 | 17 | 22 | 30 | 37 |
| Interest | 5 | 2 | 4 | 3 | 3 | 4 | 7 | 4 | 5 | 5 | 4 | 6 |
| Depreciation | 31 | 33 | 35 | 38 | 41 | 44 | 42 | 41 | 49 | 57 | 63 | 77 |
| PBT | 84 | 95 | 113 | 137 | 143 | 100 | 78 | 126 | 178 | 250 | 285 | 322 |
| Tax % | 28% | 21% | 27% | 31% | 34% | 16% | 23% | 29% | 26% | 26% | 26% | 24% |
| Net Profit | 60 | 75 | 83 | 94 | 95 | 85 | 60 | 90 | 132 | 185 | 212 | 243 |
| EPS in Rs | 4.18 | 5.24 | 5.76 | 6.56 | 6.61 | 5.9 | 4.2 | 6.23 | 9.21 | 12.89 | 14.75 | 16.93 |
| Div. Payout % | 25% | 23% | 23% | 21% | 23% | 22% | 21% | 25% | 28% | 31% | 32% | 18% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 |
| Reserves | 311 | 366 | 436 | 511 | 576 | 637 | 682 | 752 | 856 | 994 | 1,142 | 1,319 |
| Borrowings | 13 | 11 | 8 | 10 | 7 | 9 | 15 | 13 | 11 | 10 | 9 | 34 |
| Other Liabilities | 283 | 281 | 310 | 368 | 375 | 320 | 485 | 573 | 547 | 593 | 621 | 741 |
| Total Liabilities | 622 | 672 | 769 | 903 | 972 | 981 | 1,196 | 1,353 | 1,428 | 1,612 | 1,786 | 2,108 |
| Fixed Assets | 268 | 272 | 289 | 299 | 301 | 349 | 353 | 385 | 420 | 434 | 479 | 669 |
| CWIP | 3 | 2 | 2 | 8 | 54 | 20 | 28 | 20 | 35 | 55 | 74 | 30 |
| Investments | 0 | 0 | 28 | 62 | 47 | 35 | 15 | 84 | 80 | 132 | 68 | 174 |
| Other Assets | 351 | 397 | 450 | 534 | 571 | 578 | 800 | 864 | 893 | 991 | 1,164 | 1,235 |
| Total Assets | 622 | 672 | 769 | 903 | 972 | 981 | 1,196 | 1,353 | 1,428 | 1,612 | 1,786 | 2,108 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 100 | 91 | 136 | 104 | 93 | 120 | 204 | 95 | 136 | 189 | 146 | 267 |
| Investing | -27 | -36 | -123 | -64 | -75 | -96 | -170 | -43 | -104 | -120 | -101 | -141 |
| Financing | -75 | -23 | -44 | -26 | -31 | -28 | -22 | -24 | -34 | -52 | -67 | -83 |
| Net Cash Flow | -1 | 32 | -31 | 14 | -13 | -4 | 12 | 28 | -1 | 17 | -21 | 44 |
| Free Cash Flow | 75 | 54 | 84 | 50 | 8 | 61 | 152 | 19 | 49 | 97 | 18 | 79 |
| CFO/OP | 104 | 87 | 110 | 86 | 87 | 109 | 191 | 87 | 83 | 89 | 68 | 92 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 44 | 49 | 51 | 56 | 50 | 46 | 60 | 60 | 47 | 49 | 53 | 55 |
| Inventory Days | 40 | 39 | 44 | 42 | 41 | 44 | 57 | 43 | 36 | 34 | 37 | 36 |
| Days Payable | 67 | 63 | 72 | 74 | 63 | 58 | 113 | 97 | 71 | 71 | 69 | 71 |
| Cash Conversion Cycle | 18 | 25 | 23 | 23 | 28 | 31 | 4 | 6 | 12 | 13 | 21 | 20 |
| Working Capital Days | 14 | 18 | 21 | 24 | 25 | 26 | 46 | 35 | 29 | 34 | 50 | 37 |
| ROCE % | 26% | 27% | 28% | 28% | 26% | 16% | 12% | 18% | 22% | 26% | 26% | 27% |
Documents
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Company Information
Gabriel India is part of ANAND Group. The Company has established a significant presence across all automotive customer segments, including OEMs, Aftermarket, and exports. Company manufactures over 500 models of ride control products. [1] Its products include shock absorbers, struts, front forks and others.[2]