Shares of Gabriel India gained nearly 4% in Tuesday's session after brokerage Motilal Oswal Securities initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 1,266, implying an upside potential of around 29% from current levels.
The brokerage believes Gabriel India is undergoing a structural transformation from a suspension-focused auto component manufacturer into a diversified mobility platform with multiple growth drivers. The stock was trading at Rs 1,018, up 3.77%, after touching an intraday high of Rs 1,026.
Motilal Oswal expects the company to deliver a 22% revenue CAGR, 23% EBITDA CAGR, and 55% PAT CAGR between FY26 and FY28. According to the brokerage, the key growth catalysts include the integration of Dana Anand and the expansion of market opportunities through the Henkel Anand India integration.
The brokerage highlighted that Gabriel India is expanding beyond its traditional suspension business and building new growth engines across adjacent mobility segments. These strategic initiatives are expected to significantly increase the company’s addressable market and strengthen its long-term earnings profile.
Motilal Oswal also pointed to Gabriel India’s strong financial position, including a net cash balance sheet, lean working capital cycle of around 27 days, and healthy return ratios. The brokerage believes these strengths provide the flexibility to fund future growth while maintaining financial discipline.
Additionally, recent restructuring efforts and business simplification measures are expected to support long-term shareholder value creation and position the company for its next phase of growth.