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What is the story about?
Shares of Gabriel India gained over 5.5% to ₹1,035 on Tuesday, June 9, after Motilal Oswal Financial Services initiated coverage on the stock with a "Buy" rating and a price target of ₹1,266, implying an upside of about 29% from Monday's closing price of ₹981.
Motilal Oswal's scenario analysis pegs Gabriel India's bull-case target at ₹1,676, implying a 71% upside from its reference price of ₹981, while its bear-case target stands at ₹924, suggesting a downside of about 6%. The brokerage's base-case target price is ₹1,266.
The brokerage said Gabriel India is undergoing a structural transformation from a single-product suspension manufacturer into a diversified mobility platform, opening up a significantly larger growth runway, and it believes it is increasingly being positioned as the primary growth vehicle of the Anand Group.
Also read: Panacea Biotech shares up 56% in six sessions; Here are the latest developments
MOFSL said the integration of Dana Anand and Henkel Anand, along with the routing of new joint ventures through the listed entity, is strengthening Gabriel India's growth platform.
The brokerage expects growth to be driven by Gabriel’s core suspension business, where it sees continued market share gains through new customer additions, rising business with existing OEMs such as Maruti Suzuki, and premiumisation-led product upgrades.
Motilal Oswal also highlighted the company’s entry into Hero MotoCorp programs and new platform wins with Maruti Suzuki and Tata Motors.
The report identified the integration of Dana Anand as a key growth lever. Dana Anand holds strong positions in driveline products across passenger vehicles, commercial vehicles and off-highway applications, while Henkel Anand strengthens Gabriel’s presence in automotive adhesives, sealants and NVH solutions.
According to Motilal Oswal, these businesses increase Gabriel’s content-per-vehicle opportunity and diversify its revenue streams beyond suspensions.
The brokerage also pointed to emerging growth avenues, including sunroofs, lubricants, fasteners, solar dampers and e-mobility-related products, which could help broaden the company’s addressable market over the long term.
Financially, Motilal Oswal expects Gabriel India to deliver a 22% revenue CAGR, 23% EBITDA CAGR and 55% PAT CAGR between FY26 and FY28, supported by market share gains and the benefits of restructuring. It also expects return on equity (RoE) to expand to 28.4% by FY28.
The brokerage said additional value could be unlocked if more Anand Group businesses are consolidated into Gabriel India in the future, though it flagged competitive intensity, commodity price volatility, technological shifts and geopolitical disruptions as key risks.
12 analysts have coverage on Gabriel India, of which nine have a "buy" rating, two say "hold" and one has a "sell" rating on the stock.
Gabriel India shares were trading 5.5% up around ₹1,035 on Tuesday. The stock has gained about 64% over the last year.
Motilal Oswal's scenario analysis pegs Gabriel India's bull-case target at ₹1,676, implying a 71% upside from its reference price of ₹981, while its bear-case target stands at ₹924, suggesting a downside of about 6%. The brokerage's base-case target price is ₹1,266.
Why Is Motilal Oswal Bullish on Gabriel India?
The brokerage said Gabriel India is undergoing a structural transformation from a single-product suspension manufacturer into a diversified mobility platform, opening up a significantly larger growth runway, and it believes it is increasingly being positioned as the primary growth vehicle of the Anand Group.
Also read: Panacea Biotech shares up 56% in six sessions; Here are the latest developments
MOFSL said the integration of Dana Anand and Henkel Anand, along with the routing of new joint ventures through the listed entity, is strengthening Gabriel India's growth platform.
The brokerage expects growth to be driven by Gabriel’s core suspension business, where it sees continued market share gains through new customer additions, rising business with existing OEMs such as Maruti Suzuki, and premiumisation-led product upgrades.
Motilal Oswal also highlighted the company’s entry into Hero MotoCorp programs and new platform wins with Maruti Suzuki and Tata Motors.
The report identified the integration of Dana Anand as a key growth lever. Dana Anand holds strong positions in driveline products across passenger vehicles, commercial vehicles and off-highway applications, while Henkel Anand strengthens Gabriel’s presence in automotive adhesives, sealants and NVH solutions.
According to Motilal Oswal, these businesses increase Gabriel’s content-per-vehicle opportunity and diversify its revenue streams beyond suspensions.
The brokerage also pointed to emerging growth avenues, including sunroofs, lubricants, fasteners, solar dampers and e-mobility-related products, which could help broaden the company’s addressable market over the long term.
Financially, Motilal Oswal expects Gabriel India to deliver a 22% revenue CAGR, 23% EBITDA CAGR and 55% PAT CAGR between FY26 and FY28, supported by market share gains and the benefits of restructuring. It also expects return on equity (RoE) to expand to 28.4% by FY28.
The brokerage said additional value could be unlocked if more Anand Group businesses are consolidated into Gabriel India in the future, though it flagged competitive intensity, commodity price volatility, technological shifts and geopolitical disruptions as key risks.
12 analysts have coverage on Gabriel India, of which nine have a "buy" rating, two say "hold" and one has a "sell" rating on the stock.
Gabriel India shares were trading 5.5% up around ₹1,035 on Tuesday. The stock has gained about 64% over the last year.
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