Hold Gabriel India, target Rs 175: Sharekhan
ETMarkets.com|
Feb 22, 2018, 08.00 AM IST
Sharekhan has a hold call on Gabriel India with a target price of Rs 175.
The current market price of Gabriel India is Rs 155.05.
Time period given by the brokerage firm is a year when Gabriel India price can reach defined target.
"GIL reported lower-than-anticipated margins in Q3FY2018. In addition, with the increase in employee and distribution expenses, we have reduced our margin expectations. We have cut our FY2019 and FY2020 margin assumptions by 70 BPS and 100 BPS, respectively. We have reduced our earnings estimates by 10 per cent and 14 per cent, for FY2019 and FY2020, respectively. We downgrade our recommendation on the stock from Buy to Hold, with a revised price target (PT) of Rs 175 (earlier PT of Rs 222)," Sharekhan said in a report.
The current market price of Gabriel India is Rs 155.05.
Time period given by the brokerage firm is a year when Gabriel India price can reach defined target.
"GIL reported lower-than-anticipated margins in Q3FY2018. In addition, with the increase in employee and distribution expenses, we have reduced our margin expectations. We have cut our FY2019 and FY2020 margin assumptions by 70 BPS and 100 BPS, respectively. We have reduced our earnings estimates by 10 per cent and 14 per cent, for FY2019 and FY2020, respectively. We downgrade our recommendation on the stock from Buy to Hold, with a revised price target (PT) of Rs 175 (earlier PT of Rs 222)," Sharekhan said in a report.
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