Buy Gabriel India, target price Rs 173: Geojit Financial Services

Geojit Financial Services has buy call on Gabriel India with a target price of Rs 173.The current market price of Gabriel India is Rs 142.45. Time period given by analyst is a year when Gabriel India price can reach defined target.

Gabriel India, incorporated in the year 1961, is a Small Cap company (having a market cap of Rs 2065.60 Crore) operating in Auto Ancillaries sector.

Gabriel India key Products/Revenue Segments include Shock Absorbers & Struts, Scrap, Sale of services, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 712.83 Crore, down -11.54 % from last quarter Total Income of Rs 805.81 Crore and up 16.36 % from last year same quarter Total Income of Rs 612.61 Crore. Company has reported net profit after tax of Rs 29.12 Crore in latest quarter.

The company’s top management includes Mrs.Anjali Singh, Mr.Manoj Kolhatkar, Mr.Atul Jaggi, Mr.Jagdish Kumar, Mr.Aditya Vij, Mr.Pradeep Banerjee, Ms.Matangi Gowrishankar, Mrs.Pallavi Joshi Bakhru. Company has B K Khare & Co. as its auditors. As on 31-12-2022, the company has a total of 14 Crore shares outstanding.

Investment Rationale
The brokerage believes new orders, both domestic & export, will be the growth catalyst for Gabriel in the next two years. Increased market share and deepening customer relationships for both electric and IC engines reflect higher earnings growth. The brokerage values GIL at 13x on FY25E EPS & recommend Buy rating with a TP of Rs.173.