🌟 Stock of the Week: Gabriel India Ltd.

📉 GoalFi Stock of the Week – July 06, 2025

Author

GoalFi Social
July 06, 2025

Hello ,

This week, we spotlight Gabriel India Ltd., a consistent compounder from the auto ancillary space that has shown robust earnings and a strong stock performance. Backed by the reputed ANAND Group, Gabriel is emerging as a silent wealth creator in the components space with sharp focus on innovation, diversification, and a rock-solid presence in OEM and aftermarket segments.

📈 Stock of the Week – Gabriel India Ltd.
📈 Weekly Gain - 42.31%
🎯 Riding high on auto momentum with a robust presence in multiple GoalFi portfolios!

🏢 Company Overview

  • Gabriel India is a leading manufacturer of ride control products like shock absorbers, struts, and front forks.

  • The company serves all major automotive segments – 2&3 Wheelers, Passenger Cars, CVs, Railways, and exports.

  • It manufactures 500+ models, has 7 manufacturing plants, and services OEMs as well as the large aftermarket space.

  • It is the first Indian company to develop dampers for Rajdhani, Shatabdi & Vande Bharat trains.

📊 Business Mix (Q3FY24)

Segment Mix

  • 🛵 2&3 Wheelers – 61%

  • 🚗 Passenger Vehicles – 24%

  • 🚛 CV & Railways – 13%

  • Others – 2%

Channel Mix

  • OEM – 86%

  • Replacement – 12%

  • Export – 2%

Aftermarket Revenue Mix

  • 2&3 Wheelers – 41%

  • Passenger Vehicles – 37%

  • CV & Railways – 10%

  • Trading – 12%

[GoalFi] Momentum Select 10 - Small Cap Model: A Momentum-focused factor strategy selecting fundamentally strong, undervalued stocks from Nifty Smallcap 250

📦 GoalFi Portfolio Exposure

Gabriel is present in 8+ GoalFi portfolios, including:

  • All Cap April Smart Beta Cohort and many other baskets
    Entry Price: ₹542.5 | Current Price: ₹951.65

📈 Financial Highlights

Q4FY24 Standalone (YoY)

  • Revenue: ₹859 Cr (▲17%)

  • Net Profit: ₹53 Cr (▲56%)

  • EBITDA Margin: 9%

  • EPS: ₹3.67

FY25 Full-Year

  • Revenue: ₹3,643 Cr

  • Net Profit: ₹212 Cr

  • EPS: ₹14.75

  • OPM: 9%

  • ROE: 20%

🔢 Long-Term Track Record

  • Stock CAGR: 91% (3Y), 59% (5Y), 29% (10Y)

  • Profit Growth: 33% (3Y), 20% (5Y), 13% (10Y)

  • Sales Growth: 16% (3Y), 14% (5Y), 10% (10Y)

  • ROE: 19% (3Y), 16% (5Y), 20% (Last Year)

🌱 Pros & Cons:

✅ Pros:

  • Almost debt-free

  • Consistent 20.3% profit CAGR (5Y)

  • Healthy dividend payout (30.2%)

⚠️ Con:

  • Valuation rich at 11.8x book value

🔮 Future Outlook:

  • 💡 100% IT enablement target in 2 years

  • 🏭 Core product expansion

  • 🌍 Sales ramp-up in Tier 2/3 towns

  • 📲 4 IT projects - 2 already live

  • 👨‍💼 New COO (2W & 3W division): Mr. Anand Dinkar Sontakke

📊 Shareholding Pattern: FY24 vs FY25 (March-end Comparison)

🔹 Promoters
Held steady at 55% in both FY24 (Mar 2024) and FY25 (Mar 2025) – consistent promoter confidence.

🔹 Domestic Institutional Investors (DIIs)
Increased from 12.00% in FY24 to 14.67% in FY25 – strong institutional buying during the year.

🔹 Foreign Institutional Investors (FIIs)
Rose from 4.43% in FY24 to 5.23% in FY25 – gradual return of foreign interest.

🔹 Public Shareholding
Declined from 28.56% in FY24 to 25.08% in FY25 – suggests a shift in holdings towards institutional investors.

🔹 Number of Shareholders
Grew from 1.34 lakh (FY24) to 1.40 lakh (FY25) – increased retail participation despite lower share percentage.

📊 GoalFi View

Gabriel India Ltd. checks all the right boxes:
✅ Market Leadership in Ride Control
✅ High ROE + Improving Margins
✅ Consistent Long-Term CAGR
✅ Strong Portfolio Fit with Smart Beta & Momentum Strategies
✅ DII Accumulation and IT-driven efficiency pipeline

This is not just another auto ancillary company - Gabriel is a quiet compounder with growing momentum, and a worthy contender for long-term investors seeking steady alpha.

💡 Watchlist Worthy? Already in our portfolios.
Re-rating in progress. Momentum intact.

📥 Stay tuned for next week’s pick!

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We hope this update helps you stay informed and empowered in your investment journey. Feel free to reach out if you have any questions or need personalized advice.

Best Regards,
Team GoalFi

Disclaimer: This newsletter is intended solely for educational and informational use. It does not constitute financial advice or serve as a promotional message.