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Gabriel India shares gained more than 3% in morning trade on Tuesday after brokerage firm Motilal Oswal Securities (MOSL) initiated coverage on the auto components manufacturer with a ‘Buy’ rating and a target price of ₹1,266, highlighting the company’s transformation into a diversified mobility platform with strong earnings growth potential.
At 10:47 AM, Gabriel India shares were trading near the day's high of ₹1,026. The stock opened at ₹1,005 against its previous close of ₹981 and touched an intraday low of ₹990.40. Trading activity remained healthy with a volume of over 2.32 lakh shares changing hands.
Motilal Oswal believes Gabriel India is entering a new phase of growth as it expands beyond its traditional suspension business. The brokerage noted that the company is gradually transforming into a broader mobility solutions platform, supported by strategic integrations and business diversification initiatives.
According to MOSL, Gabriel India is expected to deliver a consolidated revenue CAGR of 22%, EBITDA CAGR of 23%, and PAT CAGR of 55% between FY26 and FY28. The brokerage sees significant earnings growth driven by scale expansion, operational efficiencies, and contributions from newly integrated businesses.
A key part of the investment thesis revolves around the integration of Dana Anand, which is expected to strengthen the company’s position across the mobility ecosystem. In addition, the integration of Henkel Anand India is likely to help Gabriel India expand into new product categories and broaden its market reach.
The brokerage believes these strategic initiatives are laying the foundation for a structurally larger and more profitable business over the next few years. As the company diversifies its revenue streams and strengthens its product portfolio, it could emerge as a more comprehensive auto component player serving multiple segments of the automotive industry.
Apart from growth prospects, Motilal Oswal highlighted Gabriel India’s strong financial profile. The company maintains a net cash balance sheet, lean working capital requirements of around 27 days, and healthy return ratios. These factors provide financial flexibility to pursue expansion opportunities without significantly increasing leverage.
The brokerage also pointed to the company’s recent restructuring efforts, which have simplified its business structure and positioned it for the next phase of growth. Such initiatives are expected to enhance operational efficiency and create long-term value for shareholders.
Despite the recent rally, Gabriel India shares remain below their 52-week high of ₹1,388. The stock has traded between ₹582.20 and ₹1,388 over the past year, reflecting strong investor interest in the company’s evolving growth story.
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