22nd March 2025
Retail Equity Research
CMP Rs. ₹ 589
Gabriel India Ltd Rating: Overweight
Auto Ancillaries
NSE CODE: GABRIEL BSE CODE: 505714
Gabriel India reported stable Q3 FY25 perfor- Company Data
mance, with sales reaching ₹924.18 crores, re- Market Cap (cr) Rs. 8,197.04
flecting a flat QoQ trend. Despite a 4% YoY rise, Enterprise Value (cr) Rs. 4,731.16
sales momentum has moderated post- Outstanding Shares (cr) 14.36
September's 7% growth. Operating profit re- 52 week high Rs. 587.00
mained steady at ₹78.39 crores, though it de- 52 week low Rs. 318.00
clined marginally by 1% QoQ, indicating higher 1m average volume (lacs) 8.57
cost pressures. Face value Rs. 1.00
Expenses increased sequentially, limiting mar- FY22 FY23 FY24
gin expansion. However, a notable rise in other Sales 2331.99 2971.74 3342.65
Growth(%) 38% 27% 12%
income (₹9.37 crores) supported profitability.
EBITDA 172.09 231.08 312.06
Net profit stood at ₹53.97 crores, up 2% QoQ,
EBITDA Margin(%) 7.4% 7.8% 9.3%
despite elevated depreciation and interest
PAT 89.52 132.35 185.16
costs.
Growth(%) 49% 48% 40%
Industry-wide headwinds, including sluggish EPS 6.2 9.2 12.9
commercial vehicle demand and delayed infra- P/E 18.0 14.8 25.9
structure spending, may pose near-term chal- P/B 2.1 2.2 4.8
lenges. However, Gabriel's strategic acquisi- EV/EBITDA 9.1 8.0 15.2
tions and growing sunroof business could drive ROE(%) 12% 15.2% 18%
long-term growth. ROCE(%) 17% 20.7% 25.1%
ROIC(%) 13% 16.9% 21.3%
D/E 0.02 0.01 0.01
1. Strategic Acquisition and Expansion: Gabriel India acquired assets from Motherson Marelli Auto Suspen-
sion Parts (MMAS), adding 3.2 million shock absorbers and 1 million gas springs to its capacity. This strength-
ens its suspension market position and introduces gas springs as a new product line. A technology assistance
agreement with Marelli Suspension Systems Italy enhances its offerings.
2. Financial Performance and Industry Trends: Gabriel India's Q3 FY25 revenue grew 14% YoY to ₹924
crores, driven by higher two-wheeler and passenger vehicle volumes. EBITDA stood at 8.6%, while Inalfa Ga-
briel Sunroof Systems earned ₹92 crores with 6.7% PAT margins. Passenger vehicle and two-wheeler sales
grew 6.6% and 7% YoY, respectively, while commercial vehicles saw muted 2.2% growth due to delayed gov-
ernment funds.
3. Future Outlook and Market Opportunities: Gabriel is developing semi-active suspension technology and
plans further acquisitions. Sunroof production capacity will double by 2025 to meet rising demand. The com-
pany expects sustainable sunroof margins of 12-14% by FY26 and remains focused on leveraging acquisitions
and synergies to drive profitability despite commercial vehicle challenges.
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Key Highlights
Company Overview
Gabriel India Ltd., a subsidiary of the ANAND Group, is a leading manufacturer of ride control products,
catering to Original Equipment Manufacturers (OEMs), the Aftermarket, and export markets. The compa-
ny offers over 500 models of products, including shock absorbers, struts, and front forks, and has estab-
lished a strong presence in all automotive segments.
Market Position
The company is a significant player in the 2 & 3-wheeler segment, having commenced manufacturing of
shock absorbers and front forks in 1990. It is among the top three players in the two-wheeler segment
and a market leader in the three-wheeler segment. In the passenger car segment, Gabriel India is a pre-
ferred source for struts and shock absorbers for most OEMs and holds a major share in the aftermarket
segment. The company is also a dominant force in the commercial vehicle and railway sector, boasting an
89% market share and being the first indigenous manufacturer to develop dampers for Rajdhani, Shat-
abdi (LHB), and Vande Bharat coaches.
Revenue Breakdown
In terms of revenue mix for Q3FY24, the company derived 61% of its revenue from the 2 & 3-wheeler seg-
ment, 24% from passenger vehicles (with utility vehicles contributing ~65% of this segment), 13% from
commercial vehicles and railways, and 2% from trading. The channel mix consists of 86% revenue from
OEMs, 12% from replacements, and 2% from exports. In the aftermarket segment, 41% of revenue comes
from 2 & 3-wheelers, 37% from passenger vehicles, 10% from commercial vehicles and railways, and
12% from trading.
Market Share and Manufacturing Facilities
Gabriel India commands a market share of 32% in the 2 & 3-wheeler segment, 24% in passenger vehicles
(with a 35% share in the utility vehicle segment), 89% in commercial vehicles and railways, and approxi-
mately 40% in the aftermarket segment. The company operates seven manufacturing facilities along with
three satellite plants located in Manesar, Aurangabad, and Hosur. Its production units are strategically
positioned in Parwanoo, Khandsa, Dewas, Nashik, Sanand, Chakan, and Hosur, with a dedicated IGSSPL
plant in Chennai for sunroof manufacturing.
Export Contribution
Exports currently contribute only 2% to the company's total revenue, with 63% of export sales coming
from OEMs and 37% from the aftermarket segment. Geographically, Europe accounts for ~32% of export
revenues, followed by South America (26%), Asia (21%), Africa (8%), the USA (7%), Australia (5%), and
North America (1%). The company is actively working to expand its aftermarket presence in Latin Ameri-
ca, Africa, and North America.
Research and Development
Gabriel India has three research and development (R&D) centers located in Chakan, Hosur, and Nashik,
where it focuses on innovation and new product development. The company allocated approximately 1%
of net sales for R&D activities in FY22, with cumulative spending of ~₹140 crore from FY16 to FY22. As of
Q3FY24, the company has filed for 75 patents, of which six have been granted.
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Quarterly Financial Consolidated
Profit and loss account (Rs Cr)
Dec-23 Mar-24 Jun-24 Sep-24 Dec-24
Sales 813.81 858.63 864.23 924.01 924.18
Growth(%) -6% 6% 1% 7% 0%
Expenses 743.60 781.06 786.27 844.87 845.79
Operating Profit 70.21 77.57 77.96 79.14 78.39
Growth(%) -5% 10% 1% 2% -1%
Other Income 4.53 7.92 7.35 7.41 9.37
Depreciation 14.40 14.31 15.33 15.81 15.63
Interest 1.00 1.23 0.87 0.71 1.36
Profit before tax 59.34 69.95 69.11 70.03 70.77
Tax 16.38 17.25 17.95 17.34 16.80
Net profit 42.96 52.71 51.16 52.69 53.97
Growth(%) -9% 18% -3% 3% 2%
Financial Consolidated
Profit & Loss (Rs Cr)
Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Sales 1,869.96 1,694.83 2,331.99 2,971.74 3,342.65
Growth(%) -10% -9% 38% 27% 12%
Expenses 1,732.16 1,592.30 2,186.03 2,758.05 3,052.73
Operating Profit 137.80 102.53 145.96 213.69 289.92
Growth(%) -23% -26% 42% 46% 36%
Other Income 9.70 24.31 26.13 17.39 22.14
Depreciation 43.65 42.39 41.36 48.59 56.58
Interest 3.58 6.55 4.27 4.59 5.44
Profit before tax 100.27 77.90 126.46 177.90 250.04
Tax 15.56 17.63 36.94 45.55 64.88
Net profit 84.71 60.27 89.52 132.35 185.16
Growth(%) -11% -29% 49% 48% 40%
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Balance Sheet (Rs Cr)
Report Date Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Equity Share Capital 14.36 14.36 14.36 14.36 14.36
Reserves 637.42 681.95 752.42 855.90 994.29
Borrowings 8.91 14.68 12.90 11.16 10.26
Other Liabilities 320.40 484.52 573.42 546.58 593.12
Total 981.09 1,195.51 1,353.10 1,428.00 1,612.03
Net Block 348.63 352.66 385.44 420.33 434.05
Capital Work in Progress 19.61 27.72 20.34 35.06 54.78
Investments 35.18 15.17 83.80 79.54 132.14
Other Assets 577.67 799.96 863.52 893.07 991.06
Total 981.09 1,195.51 1,353.10 1,428.00 1,612.03
Cash Flow (Rs Cr)
Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Cash from Operating Activity 120.13 203.88 95 136.36 188.89
Cash from Investing Activity -96.22 -170.14 -42.79 -103.83 -119.73
Cash from Financing Activity -27.85 -21.69 -24.11 -33.7 -52.33
Net Cash Flow -3.94 12.05 28.1 -1.17 16.83
Key Metrics: Quarterly
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Key Metrics: Yearly
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Key Ratio:
Leverage Ratios Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
D/E 0.01 0.02 0.02 0.01 0.01
Debt/Assets 0.01 0.01 0.01 0.01 0.01
Debt/Ebitda 0.06 0.12 0.07 0.05 0.03
Debt/Capital Ratio 1% 2% 2% 1% 1%
Cash flow/Debt 13.48 13.89 7.36 12.22 18.41
Interest coverage ratio 29.01 12.89 30.62 39.76 46.96
Sales Change -10% -9% 38% 27% 12%
Ebit Change -29% -19% 55% 40% 40%
Operating Leverage 2.27 2.73 1.13 1.69 2.86
Financial Leverage 1.51 1.72 1.76 1.64 1.60
Efficiency ratios
Receivable days 46 60 60 47 49
Receivable turnover 8.02 6.07 6.10 7.74 7.38
Inventory days 0.00 0.00 0.00 0.00 0.00
Inventory turnover 11 8 10 12 13
Net Fixed assets turnover 5.36 4.81 6.05 7.07 7.70
Sales/capital employed 2.83 2.38 2.99 3.37 3.28
Total Asset Turnover 1.91 1.42 1.72 2.08 2.07
Profitability ratios
Ebitda 147.5 126.84 172.09 231.08 312.06
Ebitda margin 8% 7% 7% 8% 9%
Gross Profit 370.59 343.68 433.65 556.68 678.67
Gross Profit Margin 20% 20% 19% 19% 20%
EBIT 103.85 84.45 130.73 182.49 255.48
EBIT Margin 6% 5% 6% 6% 8%
ROE 13% 9% 12% 15% 18%
Net profit margin 5% 4% 4% 4% 6%
EPS 5.90 4.20 6.23 9.22 12.89
DU Pont ROE 13% 9% 12% 15% 18%
Net Profit Margin 5% 4% 4% 4% 6%
Sales/Total assets 1.91 1.42 1.72 2.08 2.07
Financial Leverage 1.51 1.72 1.76 1.64 1.60
DU PONT ROA 9% 5% 7% 9% 11%
Net Profit Margin 5% 4% 4% 4% 6%
Sales/Total assets 1.91 1.42 1.72 2.08 2.07
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Capital Allocation Ratios Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
ROCE 13% 6% 10% 16% 20%
EBIT Margin 6% 5% 6% 6% 8%
Sales/cap employed 2.83 2.38 2.99 3.37 3.28
NOPAT 87.73 65.34 92.54 135.76 189.19
Capital employed 660.69 710.99 779.68 881.42 1018.91
ROIC 13% 9% 12% 15% 19%
Valuation Ratios
Price/Earnings 9.04 24.58 17.95 14.76 25.89
Price/Book 1.17 2.13 2.10 2.24 4.75
Marketcap 765.39 1,481.23 1,606.88 1,953.68 4,794.09
Enterprise Value 717.64 1,404.88 1,565.21 1,857.39 4,731.16
EV/EBITDA 4.87 11.08 9.10 8.04 15.16
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Digitally signed by ANSHUL
ANSHUL JAIN JAIN
Date: 2025.03.22 11:58:59
+05'30'
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