Gabriel India Limited

Consumer Cyclical — Auto Parts · NSE

₹1,449.90+₹17.60 (+1.23%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Gabriel India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gabriel India Limited manufactures and sells of ride control products to the automotive industry in India, the Netherlands, and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees3,294

Annual revenue₹4,635 Cr

How does it make money?

Turns over ₹4,635 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 3,294 employees supports ₹1.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.41 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.4% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 13.8% and earnings to grow about 35.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.8%

Est. earnings growth+35.7%

Analysts9

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +57% while net margin moved +21% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+57%

Margin effect+21%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 75.1x is demanding — it needs sustained high growth to justify
✗ P/E is 43% above its own historical median of 52.6x — expensive by its own standards
✗ P/B of 15.24x is a steep premium to book

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

75.1x

3Y Median

52.6x

40 monthly readings · mean 53.8x · range 34.4x–84.6x

Sector Median

45.7x

median of 4 sector peers

⚠️Current valuation is approximately 43% above its 3y median of 52.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 64% above the peer median of 45.7x.

vs. its own history

Expensive

52.6x median over 40 months · +43%

vs. sector peers

Expensive

45.7x median of 4 peers · +64%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

60.8x

PEG

3.13

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 7.8% to 9.9% over 3 years.
Cash generation is improving
Free cash flow is up 121% over 3 years.
Return on equity is rising
ROE has improved from 15.2% to 18.4%.
Return on capital is rising
ROCE has improved from 20.1% to 22.8%.
High return on capital employed
ROCE of 22.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1227% over 3 years, from ₹11 Cr to ₹148 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 98% against revenue up 57% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.8% to 9.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹105 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 98% against revenue up 57%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 43% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 16.3% CAGR
Latest reported year was 29.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹105 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 22.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹27,785 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

75.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

15.24x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹19.31

Profitable

Profitable on a per-share basis

ROE

18.4%

Strong

Strong capital efficiency

ROCE

22.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

29.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

40.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.34%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹105 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

35.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.4%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

1.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.74

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1371.1 / 1388.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,950 Cr	₹3,377 Cr	₹4,024 Cr	₹4,635 Cr	+16.3%
EBITDA	₹230 Cr	₹306 Cr	₹412 Cr	₹458 Cr	+25.8%
EBITDA Margin	7.8%	9.1%	10.2%	9.9%	—
PAT (Net Profit)	₹132 Cr	₹179 Cr	₹245 Cr	₹252 Cr	+24.0%
EPS	₹9.21	₹12.44	₹17.05	₹17.55	+24.0%
ROE	15.2%	17.8%	20.7%	18.4%	—
ROCE	20.1%	23.5%	26.7%	22.8%	—
Total Debt	₹11 Cr	₹75 Cr	₹69 Cr	₹148 Cr	+136.7%
Free Cash Flow	₹48 Cr	₹14 Cr	-₹5 Cr	₹105 Cr	+30.3%

🟢 Revenue has grown at 16.3% a year over 3 years.

🟢 EBITDA has grown at 25.8% a year over 3 years.

🟢 EBITDA Margin has risen from 7.8% to 9.9% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has grown at 24.0% a year over 3 years.

🟢 EPS has grown at 24.0% a year over 3 years.

🟢 ROE has risen from 15.2% to 18.4% over 3 years (+3.2 pts).

🟢 ROCE has risen from 20.1% to 22.8% over 3 years (+2.7 pts).

🔴 Total Debt has grown at 136.7% a year over 3 years.

🟢 Free Cash Flow has grown at 30.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,430 Cr

Total Liabilities

₹1,038 Cr

Cash & Equivalents

₹114 Cr

Operating Cash Flow

₹345 Cr

Capex

-₹240 Cr

Shareholding (proxy)

Institutional Holding

15.6%

Insider Holding

67.0%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

12 Aug 2026

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹1,655.44

+14.2% vs CMP

Target Range

₹1,315 – ₹1,813

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 mixed4 general

Gabriel India (NSEI:GABRIEL) - Stock Analysis

Simply Wall Street, 15 Oct

Gabriel India Share Price fall to Rs 1,392.90: what it shows

Univest, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Compare Gabriel India with

Equitymaster, 16 Oct

The Bet Gabriel India Holders Made

Simply Wall Street, 16 Oct

Gabriel India up 62% in 6 months, hits new high; what's driving auto stock?

Business Standard, 20 Jul

$2.6+ bn Anand Group's Gabriel India stock up 50% in 6 months; now enters JV with France-based Forvia - Deal details

Livemint, 09 OctPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Risk

MiddlingBusiness Quality

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑