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505714 Joint Venture Expansion Into Lubricants Market Will Drive Long Term Upside

Analysts Raise Gabriel India Price Target as Strategic Joint Venture Drives Valuation Upgrade

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505714
AnalystConsensusTarget
Not Invested
Published 22 Feb 2025

Update shared on 07 Dec 2025

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1Y
87.2%
7D
1.1%

Analysts have modestly reaffirmed their outlook on Gabriel India, with the updated implied fair value holding steady at ₹1,186.67 per share. This reflects slightly lower risk assumptions and sustained confidence in the company’s long term earnings growth potential.

What's in the News

  • Board approves an interim dividend of INR 1.90 per share, with record date on November 21, 2025 and payout on or before December 11, 2025 (Board meeting and dividend announcement)
  • Revised joint venture agreement with Inalfa Roof Systems for sunroof systems, increasing Gabriel India stake to 65% and reducing Inalfa to 35%, subject to regulatory approvals (Strategic alliance)
  • Landmark joint venture finalized with SK Enmove to enter the fast growing Indian lubricants and EV fluids market via SK Enmove Gabriel India, with a 51:49 shareholding in favor of SK Enmove and a planned greenfield facility plus acquisition of SK Enmove's existing India operations (Strategic alliance)
  • Board approves execution of detailed joint venture documentation with SK Enmove, including technology license, brand license, corporate services, and business transfer agreements, and confirms Gabriel India will invest up to INR 294 million for a 49% stake in the JV (Strategic alliance and business expansion)
  • Final dividend of INR 2.95 per equity share of INR 1 each approved for financial year 2024 25, reflecting the company’s shareholder return policy (Dividend announcement)

Valuation Changes

  • Fair Value: Implied fair value remains unchanged at ₹1,186.67 per share, indicating a stable valuation outlook.
  • Discount Rate: Fallen slightly from 14.73 percent to 14.64 percent, reflecting marginally lower perceived risk in the cash flow discounting.
  • Revenue Growth: Essentially unchanged, holding steady at around 18.39 percent, suggesting consistent expectations for top line expansion.
  • Net Profit Margin: Stable at approximately 6.89 percent, with no material revision to long term profitability assumptions.
  • Future P/E: Eased slightly from about 50.91x to 50.80x, pointing to a marginal reduction in forward valuation multiples applied in the model.

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Disclaimer

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