Thread by @StocksTreasures

As I promised with you all that I'll sharing details about a Debt Auto Ancillary🚘🚘company whose Sales, Net Profits and EPS is increasing since last 5 Quarters. So, the name of that Auto Ancillary company is 'Gabriel India Ltd'. In this detailed #thread we'll look to analyse all

the neeche details about #GabrielIndialtd from its Business, to its Fundamentals, to its Financial Results, to its Management and to its chart pattern analysis📉📈

🥇About the company

✅Gabriel India is part of ANAND Group.

✅From being a single-product company in 1961, it

has transformed itself in line with changing market, technical and social trends and played a key role in limiting emissions of ride control products and foster the cause of environmental protection.

✅Company manufactures over 300 models of ride control products.

✅Its products include shock absorbers, struts, front forks and others.

✅It has a vision to be amongst top 5 shock absorber manufacturers in the world by 2025.

🥇Revenue Breakup
Segment Mix :-
💎2/3 Wheeler:-65%
💎Passenger vehicles:-22%
💎Commercial Vehicles, Railways:-11%

💎Trading:- 2%

🥇Channel Mix :-
💎OEM:- 81%
💎Replacement:- 15%
💎Export:- 4%

🥇Market Share
💎2/3 Wheeler:- 25%
💎Passenger Vehicles:- 18%
💎Commercial Vehicles, Railways:- 75%
💎Aftermarket:- 40%

🥇Distribution Network

✅For the aftermarket business, the company operates on

a distribution network which includes 11 CFA locations, 664 dealers & a reach to ~12,000 retail outlets across India.

🥇Client Base

✅Company's client base includes various marquee OEMs like Bajaj, Mahindra, Honda, Piaggio, Royal Enfield, Maruti Suzuki, Yamaha, Renault, Skoda,

VW, Ashok Leyland, Daimler, Isuzu, Indian Railways and others.

🥇Client Concentration

💎Sales from top 5 customers in FY20 contributed :-
✅Two-wheeler - 68% of revenues
✅passenger cars - 20%
✅Commercial vehicles - 12%
In total, top 5 customers of the company contributed 50%

of total revenues.

🥇Exports
✅Presently,exports account for only 4% of revenues.
✅Under exports,the company earns~40% of revenues from OEMs & the rest 60% from Aftermarket orders.
✅Presently,Asia accounts for~35% of export revenues,followed by Africa(20%),USA (17%) & others.

✅The company is focusing to increase presence in Aftermarket of Latin America, Africa & North America.

🥇Research & Development
✅The company carries out its R&D activities at 3 R&D centres at Chakan, Hosur and Nashik in Maharashtra and Tamil Nadu.

The company spent~1% of net sales on R&D in FY20.
✅It has spent total of~104 crores on R&D from FY16-20.

🥇Technical Collaboration
✅The company has technical collaborations with Yamaha Motor Hydraulic Systems (Japan), KYB Corporation (Japan), KONI B.V. (Netherlands) across

various products.

🥇Manufacturing Capabilities
✅Presently, the company owns 7 manufacturing facilities in Haryana, Madhya Pradesh, Tamil Nadu, Himachal Pradesh, Gujarat and Maharashtra.

🥇Annual Reports
Important points in Annual Reports have been marked by green rectangle
✅Vision of being top 5 shock absorber manufacturers in the world.
✅ Developing technologies that focus on light weighting, noise reduction and automation to improve product quality and

reliability.
✅ Gabriel India is among the company having the highest number of robots in the suspension industry which would be beneficial in the long term

🥇Awards and accolades

🥇Board of Directors with their pictures

🥇Fundamental Analysis

✅Market capitalisation:- Rs 2395 Cr
✅Stock PE:- 21.7
✅Industry PE:- 21.7
✅Book Value:- Rs 53.4
✅Intrinsic Value:- Rs 141
✅Graham No:- Rs 96.1
✅ROCE:- 17.6%
✅ROE:- 12.2%
✅Profit Growth:- 15%💹💹
✅Sales Growth: 28.5%💹💹
✅Debt to Equity: 0.02

✅Reserves:- Rs 752 Cr
✅Debt:- Rs 12.9 Cr
✅ Piotroski Score:- 8
✅Promoters Holding:- 55%
✅FII Holding:- 1.38%
✅Change in FII Holding:- 0.10%
✅DII Holding:- 9.26%
✅Change in DII Holding:- 0.04%
✅Fixed Assets increased from 353 Cr to Rs 385 Cr

✅ Details about last 3/5/10 Years Sales Growth, Profit Growth, Stock Price CAGR, Return on Equity, Accounting Ratios🧾, Cash Flow Statement💵💵 in below pictures

🥇Financial Results

✅Gabriel India Sales for FY22 was at Rs 2332 Cr whereas its Sales of FY21 was at Rs 1695 Cr.
✅Gabriel India Sales has increased by 37.59% on YOY basis💹
✅Gabriel India Net Profits for FY22 was at Rs 90 Cr whereas its Net Profits for FY21 was at Rs 60 Cr

Gabriel India Net Profits has increased 50% on YOY basis💹
✅Gabriel EPS has increased from 4.20 to 6.23 on YOY basis💹

🥇Chart Pattern Analysis and my commentry✍️📝📝

✅Gabriel India CMP is Rs 166
✅Currently it is trading above all the EMAs/DMAs

✅Right now the stock is in overbought zone RSI has crossed 70
✅If I had to accumulate Gabriel India for long term. I would have accumulated it in 4 Parts.
💎Part 1:- Rs 156(20%)
💎Part 2:- Rs 142-44(30%)
💎Part 3:- Rs 136-38(20%)
💎Part 4:- Rs 120-22(30%)
Making Avg at Rs 135

✅Gabriel India Sales and Net Profits is increasing since last 5 Quarters.
✅In Q123 it did a Sales of Rs 721 Cr. Lets assume Gabriel India maintains Rs 721 Cr sales figures for next 3 Quarters. If this happens then Gabriel India Sales for FY23 will be at Rs 2880 Cr.

✅On topline this will be Gabriel India highest ever Sales.
✅Gabriel India Net Profits for Q123 was at Rs 33 Cr. Lets assume Gabriel India maintains Rs 33 Cr Net Profits for next 3 Quarters then Gabriel India Net Profits for FY23 will be at Rs 130 Cr.

✅If Gabriel India acheives said Revenue and Net Profits targets then its EPS for FY23 will change to 9.5
✅Gabriel India ATH came in FY 2017 @222 when its Sales was only at Rs 1521 Cr and Net Profits was Rs 83 and EPS was at 5.76

✅If in FY23 Gabriel India acheives the Said Revenue target of Rs 2880 Cr and Said Net Profits target of Rs 130 Cr. Gabriel India Sales will increase by 89%💹💹💯💯 and Net Profits will increase by 54%💹💹💯💯 from FY17 levels.

✅ Gabriel India will break its ATH of Rs 222 by this financial year and it can make a new ATH.
✅This stock can give more than 60% Returns💹💹💯💯 if it gives a entry at Rs 135 Avg
✅Gabriel India has very high potential of becoming a Rs 3000 Cr Market Capitalisation Company.

Note:- This #thread🧵 has been made for educational purpose my only intention was to make all my followers about Gabriel India Business, Fundamentals and Financials and its future prospects. Do Buying or selling as per your risk appetite.

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