Last Updated:July 02, 2025, 12:13 IST
Gabriel India Share Price: Elara Securities has sharply increased its target price on Gabriel India Ltd by 67%
Gabriel India Share Price
Gabriel India Share Price: Gabriel India Target Price Raised to Rs 1,115 by Elara Securities as Company Transforms into Multi-Product Player
Elara Securities has sharply increased its target price on Gabriel India Ltd to Rs 1,115 from Rs 666—a 67% jump—citing the company’s strategic transition from a single-product to a multi-product portfolio. This revision follows the announcement of a composite scheme of arrangement involving Gabriel India, Asia Investments Pvt Ltd (AIPL), and Anchemco India Pvt Ltd.
As part of the scheme, Gabriel India will absorb AIPL’s automotive business, which includes Anchemco’s operations and investments in Dana Anand India, Henkel ANAND India, and ANAND CY Myutec Automotive. Brokerage house Emkay Global said the integration will be EPS-accretive by 41% on FY25 numbers, making it a significant value addition.
Elara noted that while all regulatory approvals for the restructuring are expected over the next 10–12 months, the potential impact has not yet been factored into their current estimates. However, on a pro forma basis, EPS for FY27 and FY28 could rise 36% and 33%, respectively, assuming an 8–10% CAGR in profits from the acquired entities.
The stock has responded positively. Gabriel India shares surged 20% today to hit the upper circuit at Rs 1,011.45. This follows a 19.99% rally in the previous session, taking the stock’s seven-day gain to 88%.
Elara called Gabriel one of its top picks, stating that the greatest re-rating potential for auto ancillaries lies in diversification. “Gabriel India is a play on all four growth pillars: a) increasing product lines, b) segment expansion, c) geographic diversification, and d) inorganic growth,” it said.
The brokerage now projects FY27E and FY28E EPS at Rs 31 and Rs 35.30, respectively (up from Rs 22.80 and Rs 26.60), and values the stock at 35x FY27E EPS, aligning it with Endurance Tech.
“We maintain our Buy rating and raise the target price to Rs 1,115,” Elara said, adding that the estimates also include Gabriel’s 49% stake in the sunroof JV.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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