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505714: Future Partnerships And Dividend Policy Will Shape Balanced Outlook

Traditional Auto Parts Will Suffer Under EV Shift

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505714
AnalystLowTarget
Not Invested
Published 28 Jul 2025

Update shared on 21 Dec 2025

Fair value Increased 153%
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AnalystLowTarget's Fair Value
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1Y
120.7%
7D
8.6%

Analysts have sharply revised their price target on Gabriel India higher, lifting fair value from ₹445.0 to ₹1,125.0. They cited slightly stronger expectations for revenue growth, modestly improved profit margins, and a materially higher future P E multiple.

What's in the News

  • Board approves interim dividend of INR 1.90 per share for FY 2025 to 2026, with record date on November 21, 2025 and payout by December 11, 2025 (Board meeting and dividend increase)
  • Gabriel India plans to revise its joint venture structure with Inalfa Roof Systems for sunroof systems, increasing its proposed stake to 65% from 49%, subject to fresh regulatory approvals (Strategic alliance)
  • Company signs a major joint venture with Korea based SK Enmove to enter the Indian lubricants and EV fluids market, with SK Enmove holding 51% and Gabriel India 49%, including acquisition of SK Enmove India operations (Strategic alliance)
  • Board approves execution of the joint venture agreement with SK Enmove and incorporation of a subsidiary vehicle, enabling Gabriel India to invest up to INR 294.0 million for a 49% stake in the JV company (Board meeting and strategic alliance)
  • Board clears incorporation of a wholly owned subsidiary as an investment vehicle to hold a 49% equity stake in the SK Enmove joint venture company (Business expansion)

Valuation Changes

  • Fair Value: raised significantly from ₹445.0 to ₹1,125.0
  • Discount Rate: increased slightly from 14.24 percent to 14.68 percent
  • Revenue Growth: revised up modestly from 20.66 percent to 21.56 percent
  • Net Profit Margin: nudged higher from 6.78 percent to 6.89 percent
  • Future P E: expanded sharply from 19.0x to 44.6x

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.