Gabriel India shares surged 20% to ₹1,011.45, marking an 88% rally over the last seven trading sessions. This momentum follows Elara Securities' revised target price of ₹1,115—up 67% from its previous estimate—driven by the company’s transition into a multi-product auto ancillary player. The upward revision stems from a composite scheme of arrangement involving Gabriel India, Asia Investments Pvt Ltd (AIPL), and Anchemco India Pvt Ltd. The scheme will see the vesting of AIPL’s automotive business, including Anchemco’s operations and strategic investments in Dana Anand India, Henkel ANAND India, and ANAND CY Myutec Automotive, into Gabriel India.
Brokerages view the move as EPS-accretive, with Elara projecting a 41% EPS boost for FY25 and estimating FY27E and FY28E EPS at ₹31 and ₹35.30 respectively—up from ₹22.80 and ₹26.60. The forecast assumes an 8–10% CAGR in profits from the acquired businesses. Elara values the stock at a 35x forward P/E, matching peer Endurance Technologies, and expects a 45% EPS CAGR through FY27. Citing product diversification and inorganic expansion, Elara named Gabriel India a top pick, forecasting a 32% upside from Tuesday’s close.
Gabriel India Ltd continued its rally, hitting the 20% upper circuit at ₹1,011.45, adding to a 19.99% jump in the previous session. With a cumulative gain of 88% over the past seven trading sessions, the stock has drawn major investor interest. The trigger: Elara Securities’ bullish revision of its target price to ₹1,115—up from ₹666—highlighting the company’s shift to a multi-product strategy.
This strategic transformation is being driven by a composite scheme of arrangement involving Gabriel India, Asia Investments Pvt Ltd (AIPL), and Anchemco India Pvt Ltd. The scheme will see Gabriel absorb AIPL’s automotive business unit, which includes Anchemco’s operations and investments in Dana Anand India, Henkel ANAND India, and ANAND CY Myutec Automotive.
According to Elara, the deal is earnings-per-share (EPS) accretive by 41% on FY25 financials. On a proforma basis, FY27E and FY28E EPS have been revised upward to ₹31 and ₹35.30, assuming 8–10% CAGR from the acquired firms. Gabriel is now expected to deliver a 45% EPS CAGR from FY25–27, and is valued at 35x FY27E earnings, in line with peer Endurance Technologies.
Calling Gabriel one of its top picks, Elara expects a 32% upside from current levels, citing strong re-rating potential from diversified product offerings and inorganic expansion.
