Q3FY21 Company Update - Gabriel India - ICICI Direct

Gabriel India (GIL) reported a solid Q3FY21 performance. Net sales for the quarter were at Rs. 536.5 crore, up 17.8% YoY, broadly following the underlying volume growth at key OEMs. EBITDA in Q3FY21 was at Rs. 39.1 crore with corresponding EBITDA margins at 7.3% (up 20 bps YoY but down 60 bps QoQ). PAT in Q3FY21 was at Rs. 24.5 crore, up 40% YoY.

Valuation & Outlook

Over the longer term, GIL retains its ambition to be a top five shock absorber player globally. Healthy topline outlook, potential for margin improvement, strong financials (debt free b/s, double digit return ratios) and EV opportunity help us remain positive on the stock. We introduce FY23E numbers, upgrading it from HOLD to BUY with a revised target price of Rs. 150 (i.e. 20x P/E on FY23E EPS of Rs. 7.5; previous target price Rs. 125).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GabrielIndia_CoUpdate_Feb21.pdf

Shares of GABRIEL INDIA LTD. was last trading in BSE at Rs.115 as compared to the previous close of Rs. 115.95. The total number of shares traded during the day was 15809 in over 377 trades.

The stock hit an intraday high of Rs. 117 and intraday low of 114. The net turnover during the day was Rs. 1824437.

Source : Equity Bulls

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