Buy Gabriel India, target Rs 174: Axis Securities
ETMarkets.com|
Feb 28, 2018, 07.52 AM IST
Axis Securities has a buy call on Gabriel India with a target price of Rs 174.
The current market price of Gabriel India is Rs 158.05.
Time period given by the brokerage firm is 9 months when Gabriel India price can reach defined target.
Q3FY18 was an excellent quarter for Gabriel led by nearly 22 per cent YoY growth in 2/3W, nearly 13 per cent growth in PVs and nearly 49 per cent growth in CVs (which included Railways). The segment mix for 2/3W: PV: CV was reported in the proportion of 57:31:12 in 9MFY18 vs 55:32:13 in FY17- a shift towards 2W. Moreover, in this 9MFY18, the channel mix was in the ratio of 86:11:3 for OE: Replacement: Exports vs 83:13:4 in FY17- a clear shift towards OE sales.
Gabriel has pitched for new launches from the stable of Yamaha, Suzuki, Royal Enfield and other OEs in 2W segment; the company has won LoI for Honda Activa front fork and the supply would start from Mar.’19 for their Gujarat & Narsapara plant with good volumes. Company has also won some orders from domestic 3W OEs; the order volume is small with
huge potential in future.
For Gabriel as company has 80 per cent market share for the shock absorbers in CVs. Railways are shifting towards the LHB coaches which sport higher number of shock absorbers and hence, the opportunity size is quite large.
The current market price of Gabriel India is Rs 158.05.
Time period given by the brokerage firm is 9 months when Gabriel India price can reach defined target.
Q3FY18 was an excellent quarter for Gabriel led by nearly 22 per cent YoY growth in 2/3W, nearly 13 per cent growth in PVs and nearly 49 per cent growth in CVs (which included Railways). The segment mix for 2/3W: PV: CV was reported in the proportion of 57:31:12 in 9MFY18 vs 55:32:13 in FY17- a shift towards 2W. Moreover, in this 9MFY18, the channel mix was in the ratio of 86:11:3 for OE: Replacement: Exports vs 83:13:4 in FY17- a clear shift towards OE sales.
Gabriel has pitched for new launches from the stable of Yamaha, Suzuki, Royal Enfield and other OEs in 2W segment; the company has won LoI for Honda Activa front fork and the supply would start from Mar.’19 for their Gujarat & Narsapara plant with good volumes. Company has also won some orders from domestic 3W OEs; the order volume is small with
huge potential in future.
For Gabriel as company has 80 per cent market share for the shock absorbers in CVs. Railways are shifting towards the LHB coaches which sport higher number of shock absorbers and hence, the opportunity size is quite large.
