Gabriel India Ltd. : An Equity Research Report by Sanjeedeep Mishra

Overview-

Gabriel India Ltd. (NSE:GABRIEL) lost 30% of its value from Dec 22 to March 23. However, Shares of GIL made a strong recovery following two moths till May, completely covering their 4 months loss. ICICI Direct gave a BUY rating with a TP of Rs.260.

Source- ICICI Direct and GIL Q4FY23 Con-call.

Gabriel India Limited is a prominent player in the shock absorber/ride control domain and counts all leading OEM’s domestically as its clients. Product Portfolio include McPherson Struts, Gas Shock Absorber and Steering Dampers. Company’s share of revenues from PV space has improved from 21% in FY21 to 23% in FY23 and is expected to improve to 25% with its own intent to improve it to 30%. To expand its presence in hot selling SUV space & to catch up on premiumization trend, company has entered into JV with Inalfa (globally 2nd largest sunroof manufacturer with OEM’s like JLR, BMW, Mercedes, etc as clients) for manufacturing of sunroof system & related components for OEMs in India.

Overall industry growth of 22%, despite the inflationary pressures and continued semiconductor issues. the industry sales for passenger cars were 3.9 million vehicles, breaking Pre-Covid records, surpassing Japan to become the third highest PV market in terms of sales. EV 2W/3W sales crossed 1million.

The semiconductor chip supply for auto industry will continue to remain a challenge for at least another 2 years. Steel and Aluminium are the key raw materials for GIL and hence is susceptible to volatile metal prices which are govern by global macroeconomics especially Chinese economy.

Industry – Auto Parts and Equipments.

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