Buy This Small Market Cap Stock For Potential Upside Of More Than 22%: Sharekhan

In the latest reports of Sharekhan, a leading brokerage firm in India, the brokerage firm has suggested buying a small market cap stock from an auto ancillary sector. Sharekhan is highly bullish on the stock and has given a target price of Rs. 197 in the upcoming trading sessions.
As per the chart, the stock is on a strong upside rally, with few signs of a trend reversal.

The stock surging to the upside in the past few weeks; however, the latest reports of Sharekhan mention the stock has the potential to make a more than 22% move positively in upcoming trading sessions.

Outlook of Gabriel India

Gabriel India is a subsidiary of ANAND Group. From a corporation with a single product in 1961, the company have evolved to keep up with shifting commercial, technological, and social trends. Gabriel India has been instrumental in reducing ride control product emissions and advancing the cause of environmental protection.
The company produces over 300 different ride control product models. Shock absorbers, front forks, struts, and other items are among its product offerings. The company sees itself among the top 5 shock absorber manufacturer in the world by the year 2025.

Outlook of Gabriel India Stock Price

Gabriel India is a small market cap company with over Rs. 2,316 Crores of market capitalisation. The current market price of the stock is Rs. 161. The stock's all-time high price is Rs. 176, and the all-time low is Rs. 102. The stock has a Return On Equity of 13.7% and a Return On Capital Employed of 19.4% over 5 years.

The stock price is near its all-time high, and the latest report by Sharekhan suggests the stock can reach a target price of Rs. 197.

Sector Outlook Of Gabriel India

'We remain positive on demand for the 2W, PV, and CV industry in the medium term and expect recovery across sub-segments after the normalisation of economic activities, led by pent-up demand from rural, semi-urban, and urban along with a favourable macro outlook. 2W and PV demand is expected to remain strong amid COVID-19, as a preference for personal transport and since 2W remains the most affordable mode of transport. Rural sentiments continue to remain strong, aided by strong farming income and positive prediction for monsoon this year. CV demand is expected to remain robust for the next 2-3 years, driven by an increase in infrastructure and mining activities. Export markets have witnessed a notable recovery in volume sales offtake across regional markets.' Says Sharekhan in the latest report.

Buy Call Of Sharekhan On Gabriel India

According to a report of Sharekhan, ': Gabriel is witnessing strong traction from domestic and global OEM, as automotive demand recovers, driven by the strong brand recall, and a leadership position in suspension components. The outlook remains positive, driven by the normalisation of economic activities. Incremental revenue will likely improve, driven by client additions, new product launches, sector expansion, domestic and global penetration, and value additions in its products. Operating profit margin (OPM) is expected to expand, led by cost reduction, increased localisation, operating leverage, and enhanced value addition. We believe Gabriel's business performance will continue to outperform the industry, driven by its leadership position and preparedness to benefit from faster EV adoption. The stock is available at attractive valuations of 12.9x P/E multiple and 7.6x EV/EBITDA multiple its FY2024E. We maintain our Buy rating on Gabriel with a revised PT of Rs. 197, aided by robust automotive demand, its preparedness to benefit from EV adoption in India, and attractive valuations.'