Evolution and History of Gabriel India
Gabriel India Limited was established in 1961 as a part of the Anand Group, one of India’s leading automotive component manufacturers. Over the decades, the company has evolved into a market leader in ride control products, catering to OEMs, aftermarket, and exports across two-wheelers, passenger cars, commercial vehicles, and railways.
Key Milestones in Gabriel India's Journey
-
1961 – Gabriel India was incorporated, starting its operations in the auto components industry.
-
1970s – The company expanded its product portfolio to cater to India's growing automobile sector.
-
1980s – Became a key supplier to major automobile OEMs, solidifying its position in the domestic market.
-
1990s – Focused on technological collaborations and joint ventures to enhance product quality and innovation.
-
2000s – Diversified into exports, catering to international markets and strengthening global partnerships.
-
2010s – Established state-of-the-art R&D centers, expanded product offerings, and introduced advanced suspension technologies.
-
2020s – Positioned itself as a leader in ride control systems, focusing on sustainability, innovation, and global expansion.
Today, Gabriel India operates seven manufacturing plants across India, supplying to leading automakers such as Maruti Suzuki, Tata Motors, Hyundai, Bajaj Auto, and Honda. The company continues to invest in R&D and sustainability, aiming to remain a frontrunner in the auto ancillary industry.
Price Performance
Historical Price Performance
| Time |
Gabriel |
Nifty50 Returns |
Sensex Returns |
Industry Returns |
Sector Returns |
| 1 Day |
11.52% |
1.16% |
0.96% |
1.99% |
2.28% |
| 1 Week |
0.6% |
-0.94% |
-1.22% |
-1.59% |
-3.58% |
| 1 Month |
1.31% |
-5.9% |
-6.23% |
-10.02% |
-11.04% |
| 3 Months |
11.01% |
-8.71% |
-8.97% |
-21.18% |
-12.79% |
| 6 Months |
-7.37% |
-11.35% |
-10.52% |
-26.14% |
-18.93% |
| 1 Year |
42.36% |
-0.33% |
-0.24% |
-2.5% |
0.96% |
| 3 Year |
337.6% |
37.51% |
35.63% |
80.1% |
116.63% |
| 5 Years |
432.96% |
98.55% |
91.86% |
219.53% |
251.73% |
| 10 Years |
452.94% |
150.37% |
150.82% |
493.33% |
352.53% |
Financial Performance (2020-2024)
Over the past five years, Gabriel India has demonstrated consistent financial growth:
| Indicator |
CAGR 3 Yrs |
CAGR 5 Yrs |
TTM |
Mar '24 |
Mar '23 |
Mar '22 |
Mar '21 |
Mar '20 |
| Total Rev. Ann. |
25.1% |
10% |
3603.1 |
3364.8 |
2989.1 |
2358.2 |
1719.2 |
1879.7 |
| Operating Exp. Ann. |
24.2% |
10% |
3258 |
3052.7 |
2758.1 |
2186.1 |
1592.3 |
1732.2 |
| Operating Profit Ann. |
41.4% |
10.3% |
313.1 |
289.9 |
213.7 |
145.9 |
102.5 |
137.8 |
| OPM Ann. % |
13.1% |
0.2% |
|
8.62% |
7.15% |
6.19% |
5.96% |
7.33% |
| Total Exp. Ann. |
23.8% |
9.9% |
|
3114.8 |
2811.2 |
2231.7 |
1641.2 |
1779.4 |
| EBIDT Ann. |
35% |
10.8% |
|
312.1 |
231.1 |
172.1 |
126.8 |
147.5 |
| EBIDT Ann. margin % |
7.9% |
0.7% |
|
9.27% |
7.73% |
7.30% |
7.38% |
7.85% |
| Interest Ann. |
105.7% |
81.2% |
4.2 |
56.6 |
4.6 |
4.3 |
6.5 |
3.6 |
| Depr. |
-49.7% |
-33.4% |
61.1 |
5.4 |
48.6 |
41.4 |
42.4 |
43.7 |
| PBT Ann. |
47.5% |
11.8% |
279.9 |
250 |
177.9 |
126.5 |
77.9 |
100.3 |
| Tax Ann. |
54.5% |
6.2% |
69.3 |
64.9 |
45.6 |
36.9 |
17.6 |
15.6 |
| PAT Before ExtraOrdinary Items Ann. |
45.4% |
14.3% |
|
185.2 |
132.4 |
89.5 |
60.3 |
84.7 |
| Net Profit Ann. |
45.4% |
14.3% |
210.5 |
185.2 |
132.4 |
89.5 |
60.3 |
84.7 |
| NPM Ann. % |
15.9% |
3.9% |
|
5.53% |
4.45% |
3.83% |
3.55% |
4.52% |
| EPS Adj. latest Ann. |
45.4% |
14.3% |
|
12.9 |
9.2 |
6.2 |
4.2 |
5.9 |
Competitive Landscape
In the competitive arena of the auto ancillary industry, Gabriel India holds a significant position. When compared to peers like Munjal Showa, Endurance Technologies, and Motherson Sumi, Gabriel India's financial metrics such as P/E ratio, Return on Equity (ROE), and Return on Capital Employed (ROCE) are competitive, underscoring its robust performance.
Research & Development (R&D) Initiatives
Gabriel India has been proactive in strengthening its R&D capabilities to meet evolving market demands:
-
New R&D Center: The company is developing a modern R&D setup focused on passenger cars, commercial vehicles, and railways at Chakan, Pune. This center aims to enhance capability and customer service for future market requirements.
-
Innovation Focus: The R&D strategy emphasizes creating lighter, fuel-efficient, and durable ride control products, aligning with global trends towards sustainability and performance.
Corporate Strategy and Growth Drivers
Gabriel India's strategic initiatives include:
-
Market Expansion: The company plans to enter new overseas markets and be part of new vehicle programs of OEMs, aiming to diversify its revenue streams and reduce dependency on domestic markets.
-
Product Diversification: By expanding its product portfolio, Gabriel India aims to cater to a broader customer base and mitigate risks associated with market fluctuations.
Shareholder Value and ESG Initiatives
Gabriel India is committed to enhancing shareholder value and promoting sustainability:
-
Dividend Policy: The company has a track record of consistent dividend payouts, reflecting its strong financial health and commitment to shareholders.
-
Sustainability Efforts: Gabriel India is focusing on energy-efficient manufacturing practices and sustainable product development, aligning with global environmental standards.
| Summary |
Dec 2024 |
Sep 2024 |
Jun 2024 |
Mar 2024 |
Dec 2023 |
Sep 2023 |
Jun 2023 |
Mar 2023 |
| Promoter |
55% |
55% |
55% |
55% |
55% |
55% |
55% |
55% |
| FII |
5.3% |
5.5% |
4.9% |
4.4% |
4.1% |
3.0% |
2.7% |
2.9% |
| DII |
13.5% |
12.9% |
12.1% |
12% |
12.2% |
11.7% |
11.0% |
11.1% |
| Public |
26.2% |
26.6% |
28.0% |
28.6% |
28.7% |
30.3% |
31.4% |
31% |
Peer Comparison
| Stock |
Current Price |
Market Capitalization |
PE TTM Price to Earnings |
PEG TTM PE to Growth |
ROE Annual % |
RoA Annual % |
Piotroski Score |
Revenue Growth Annual YoY % |
Net Profit Annual YoY Growth % |
Dividend yield 1yr % |
| Gabriel India Ltd. |
493 |
7081.64 |
30.84 |
0.4 |
17.83% |
10.04% |
5 |
|
|
0.86% |
| Samvardhana Motherson |
122.55 |
86229.8 |
20.91 |
0.2 |
10.38% |
3.19% |
6 |
25.23% |
81.61% |
0.65% |
| Bosch Ltd. |
26900 |
79337.78 |
39.17 |
-3.04 |
20.66% |
14.36% |
8 |
13.29% |
74.77% |
0.63% |
| Tube Investments of India |
2688.95 |
52029.54 |
63.83 |
-1.67 |
23.54% |
9.11% |
4 |
13.46% |
25.65% |
0.13% |
| Schaeffler India Ltd. |
3175.3 |
49631.11 |
52.86 |
|
17.60% |
13.64% |
4 |
13.22% |
4.43% |
0.82% |
| UNO Minda Ltd. |
841.3 |
48304.4 |
50.01 |
2.02 |
17.81% |
8.88% |
7 |
24.63% |
34.70% |
0.25% |
| Sona BLW Precision |
504.65 |
31375 |
53.58 |
2.69 |
19.51% |
13.38% |
5 |
19.41% |
30.86% |
0.62% |
SWOT Analysis
| Strengths 🟢 |
Weaknesses 🔴 |
| Market Leadership – One of India's leading manufacturers of shock absorbers and ride control products. |
Dependency on Automotive Sector – Heavily reliant on vehicle demand, making it vulnerable to industry slowdowns. |
| Strong OEM Relationships – Supplies to top automakers like Maruti Suzuki, Tata Motors, Hyundai, Bajaj Auto, and Honda. |
Limited Presence in EV Segment – Needs stronger expansion in electric vehicle (EV) suspension technology. |
| Diverse Product Portfolio – Offers solutions for two-wheelers, passenger cars, commercial vehicles, and railways. |
Raw Material Cost Fluctuations – Rising prices of steel, rubber, and essential components impact margins. |
| Robust R&D Capabilities – Invests in a modern R&D center in Pune, developing next-gen suspension systems. |
Competitive Pricing Pressure – Faces stiff competition from domestic and global players affecting profitability. |
| Financial Stability – Strong revenue growth, profitability, and regular dividend payouts. |
|
| Global Expansion – Growing international market presence, reducing dependency on a single region. |
| Opportunities 🟡 |
Threats ⚠️ |
| Growing EV Market – Rising EV adoption presents opportunities to develop specialized ride control solutions. |
Automobile Industry Slowdowns – Any decline in vehicle sales directly affects demand for Gabriel India’s products. |
| Infrastructure Growth – Increased government spending on transport and mobility could drive demand for commercial vehicle suspensions. |
Intensifying Competition – Faces competition from global players like Endurance Technologies and Motherson Sumi. |
| Export Potential – Expanding presence in Europe, the US, and other international markets can enhance revenue. |
Regulatory & Environmental Changes – Stricter emission norms and evolving government policies may require costly manufacturing adaptations. |
| Aftermarket Expansion – Rising demand for replacement parts in the aftermarket segment ensures a steady revenue stream. |
Raw Material Price Volatility – Fluctuations in steel, aluminum, and other input costs can squeeze profit margins. |
| Strategic Partnerships & M&A – Collaborations or acquisitions could accelerate technological advancements. |
Technological Disruptions – Rapid innovations in suspension technology by competitors could outpace Gabriel India’s R&D efforts. |
Conclusion and Future Outlook
Gabriel India's consistent financial performance, strategic R&D investments, and proactive market expansion position it well for sustained growth. The company's focus on innovation and sustainability aligns with global automotive trends, making it a promising player in the ride control products sector.
Discalimer!
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