This Small Cap Stock Hit 52-Week High Today: Why Analyst Sees Further 25% Rally

Shares of Gabriel India climbed 2% on Friday to hit a new 52-week high on Friday. Analysts at ICICI Direct see the stock going higher as they believe in the stock’s long-term potential in the EV space.

The Gabriel India Analyst: Shashank Kanodia for ICICI Direct assigned a “buy” rating to the stock with a price target of ₹260, indicating a 25% upside from the stock’s last closing price of ₹208.50.

The Gabriel India Thesis: In its latest note, the brokerage firm said that the auto ancillary company is among the global top-10 shock absorber manufacturer and aims to be in the top five by 2025.

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The firm highlighted that company has a presence across all major original equipment manufacturering (OEM) segments. Some notable nameplates associated with the company include Mahindra Thar, XUV 700, Maruti New Brezza, and Grand Vitara, among others. The firm added that a promising trend for GIL is its rising market share in the passenger vehicle-sports utility vehicle (PV-SUV) segment, which bodes well for the company’s overall sales performance.

The analysts further said that its growing dominance in the PV-SUV space is particularly advantageous, considering the relatively low market penetration of the passenger vehicle category in the domestic market. This indicates a significant growth potential and offers long-term sustainability for GIL’s business expansion.

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The brokerage firm added that it expects the company’s sales and net profit to grow at a compound annual growth rate of 10% and 19%, respectively, over FY23-25.

Price Action: Gabriel India share price was up 1.82% to trade at ₹212.30 in the early hours of trading on Friday.

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Posted In: Analyst ColorPrice TargetAnalyst RatingsGabriel IndiaICICI Direct