Gabriel India stock soars 41% amid strategic reorganization and growth projections

ET Intelligence Group: The stock of Gabriel India has jumped 41% in a week after the auto ancillary company proposed to reorganise its subsidiaries to club the automotive products portfolio under one entity. The scheme of arrangement is a part of the parent Anand Group's revenue target of ₹50,000 crore by 2030 compared with ₹20,000 crore in FY25. After the post-market announcement on June 30, analysts have raised the EPS target for FY27 by 36%.

The Anand Group has major business interest in automotive components such as shock absorbers, supply motor and controller, coolants, braking fluids, synchroniser rings, and drivetrain solutions spread across over 14 group companies. It also has a presence in the hospitality segment where it operates three properties in Rajasthan.

The latest composite scheme to bring together automotive segments will increase the promoter stake in Gabriel to 63.5% from 55%. The proposed transaction is expected to be effective in the next 10-12 months, subject to timely receipt of regulatory approvals.


According to the company management, the initiative will help in simplification of the group structure, product diversification, and expanding domestic and global presence. The deal is accretive to the bottomline and will increase FY25 earnings per share (EPS) by ₹7 or by 41%. It will also increase the scale of operations of Gabriel without any cash outlay.

The restructuring will transform Gabriel into a multi-product entity with offerings across automotive fluids and adhesives, drivetrain systems, and aluminium forgings.

After the announcement, analysts have upgraded EPS estimates and target price of the stock. Anand Rathi Research and Elara Capital have raised EPS estimates for FY27 by 36%. Anand Rathi expects Gabriel's revenue and profit to grow by 22% and 53% annually between FY25 and FY27 respectively. It has assigned a target price of ₹1,400 citing the EPS accretion, and potential merger and acquisition opportunities.

For the March 2025 quarter, Gabriel's revenue and net profit grew by 17% and 31% to ₹1,073 crore and ₹64.4 crore, respectively on a year-on-year basis. For FY25, revenue and net profit rose 19% and 37% to ₹4,063.4 crore and ₹245 crore, respectively.