Gabriel India is a manufacturer of various types of vehicle shock absorbers and front forks. Almost all the domestic automakers in the country are Gabriel India customers.
Founded by DC Anand in 1961, the company has state-of-the-art R&D centers located at Chakan, Hosur and Nashik. It also has business agreements with international companies.
Gabriel India’s sales are growing at a steady seven to eight per cent. At the same time, interest and pre-tax income fluctuations are due to rising commodity prices. Cash flow is good. The debt-free company has a surplus of Rs.469 crores.
The stock is currently trading at a very reasonable level. Gabriel India’s share price is 30 times the share earnings per share. At the same time, the ratio of share price to earnings per share of companies in this sector is on average 52. It is clear from this that Gabriel India is less expensive compared to other companies in the sector. Gabriel India’s revenue is better than other companies.
Gabriel India has posted a net profit of Rs.26.57 crore in the second quarter of the current financial year. Profit growth was 23% compared to the same period last year. Revenue rose to Rs.471 crore from Rs.390 crore.
Gabriel India’s two-wheeler segment is expected to account for 55 per cent of its revenue. The passenger vehicle segment is expected to contribute 32 per cent and the commercial and railway segment 13 per cent.
The potential for strong growth in the automobile industry also paves the way for Gabriel India’s business to improve. Gabriel India will benefit from the launch of new models from automakers. In general, automobile companies are expected to perform well in 2021. Gabriel also looks forward to India’s performance.
For the past two years, the company has been able to reduce maintenance and repair costs. A debt-free, large-scale company may not need to take out a loan if it needs expansion operations. Gabriel India is a stock worth considering for long-term investors. The stock price is likely to rise to Rs 146 in the next financial year.
