Stocks under Rs 200 - Dont miss action in this smallcap auto-ancillary stock!
Key highlights of the company are its robust demand and big order wins, along with rise in exports and healthy Q2 numbers.
Gabriel India is one of the leading companies engaged in the manufacturing and sales of ride control products across all automotive customer segments. It primarily works in the production of shock absorbers and front forks for 2&3 wheelers and also remains a key supplier of parts for passenger cars and OEM. With the market capitalization of about Rs 2,600 crore, this Small-Cap company holds strong market share in Aftermarket products and is one of the top exporters in European, N.A. and Latin American markets.
The company posted healthy Q2 FY22-23 numbers and registered strong double-digit growth across the segments. Revenue jumped 35.63 per cent YoY to Rs 805.8 crore versus 594.1 crore in the corresponding period last year. Net profit grew at an astonishing rate of 46.75 per cent YoY to Rs 36.5 crore in September 2022 as against 24.9 crore in September 2021. Such strong numbers have been driven by strong rebound in demand and order wins, while the Aftermarket and exports have boosted the top-line. What’s more to it is that the stock is trading at attractive valuations, justified by the PE of 21.42 as against sector PE of 28.83.
Technically, the stock has registered a strong price volume breakout from its 57-week cup & handle pattern, which is considered strongly bullish over a medium-long term. Past week, it jumped over 14 per cent on the back of massive volumes. All the technical indicators and moving averages highlight strong uptrend and buying interest in the stock.
Currently, GABRIEL shares are trading at Rs 186 level on NSE. Driven by growing fundamentals and bullish technical factors, the stock should be a top candidate to focus on for times to come.
What’s your call on GABRIEL INDIA?
