Company is in a gradual shift to better margin products. So if the bull market continues, stock can still go up. If the market corrects, stock is unlikely to be an exception.
Disc:invested.
That was pretty easy, even i have same saying for all the stocks that i hold.
If bull market = stock market will do good
If bear market = stock market will do no good
What about valuations, headwinds?
The current price justified to capture future growth?
Q2FY23 Updates
Top 5 shock absorber manufacturers in the world and market leaders for 60 years
Market Leadership in Aftermarket - 37% after market
YTD SEGMENT
2W&3W - 32% Market Share, 61% % to Total Sales
PASSENGER VEHICLES - 24% Market Share, 25% % to Total Sales
COMMERCIAL VEHICLES - 89% Market Share, 11% % to Total Sales
Merger & Acquisition- Inalfa roof System - leading in roof systems technology and solutions, delivering roof systems to almost every major car and truck manufacturer in the world.
According to my estimate shared in the PPT target has been achieved long back. I am looking to optimize my exit - still holding my entire investment - will not allocate any further - Don’t intend to evaluate the stock for future prospects - looking for opportunities elsewhere as I am happy with what I got here
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Sunroofs segment is coming along nicely as per Q4 call. 58 cr revenue in Q4 ramping up to 400-500 cr revenue in 2026.
Gabriel India -
Q4 and FY 24 results and concall highlights -
Q4 outcomes -
Revenues - 858 vs 737 cr, up 16 pc
Gross margins @ 25.1 vs 23.7 pc
EBITDA - 77 vs 52 cr, up 47 pc ( margins @ 9 vs 6 pc )
PAT - 53 vs 34 cr, up 55 pc
FY 24 outcomes -
Revenues - 3342 vs 2971 cr, up 9 pc
Gross margins @ 25.1 vs 23.7 pc
EBITDA - 293 vs 213 cr, up 37 pc ( margins @ 9 vs 7 pc )
PAT - 185 vs 132 cr, up 40 pc
Net cash position - 300 cr
Last 10 yr sales CAGR @ 9.8 pc
Last 10 yr PAT CAGR @ 13.3 pc
Segment wise sales mix -
2W - 61 pc
PVs - 25 pc
CVs - 12 pc
Trading - 2 pc
Channel wise sales mix -
OEM sales - 86 pc
After Mkt sales - 11 pc
PV market did well in FY 24 on the back of strong SUV sales. CV sales were flat for FY 24. Expecting a CV sales pick up after monsoons
2W+3W sales did well in FY 24 crossing 2cr vehicles sold ( last time this happened was in FY 20 )
Company is supplying to almost 100 pc requirements of leading EV 2-wheeler customers - OLA, TVS - Electric and Ather
Company does supply to all 3W makers - Bajaj, Atul and TVS
Company’s sunroof plant commenced operations in Q4. Did a sales for 59 cr and reported a positive EBITDA for the same. Company sold 23k sunroofs in Q4. That translates to Rs 24k / sunroof
Likely to sell > 10k sunroofs in Q1. Company is supplying to both Kia and Hyundai. Company intends to generate mid teens EBITDA margins from this unit before FY 26. Current capacity of the plant is around 2 lakh sunroofs / Yr. Once the company is able to sell 2 lakh sunroofs / yr, the annual revenue run rate should be > 400 cr from this vertical
There has been a slowdown in the 2W EV sales post 31 Mar due ending of FAME - II incentives. However, since the prices of Li-Ion batteries are continuously coming down, this slowdown should be temporary
Company’s sales from EV-2W in FY 24 were around 150 cr
Company to start supplying the shock absorbers for the new Swift wef FY 26. Likely to do an annual revenue of 90-100 cr from this business
Company expects to do an EBITDA margins of 10 pc for full FY 25
Company is gonna supply cabin Dampeners to DAF for the European + Brazilian Mkts wef late FY 25. This has the potential to be a 25 cr / yr kind of business. Company is also hoping to get orders for Axle dampers from DAF. That can potentially open up a big mkt for the company
Company is in active talks with 2 PV OEMs for exports. Likely to receive orders by end of FY 25. Revenues may accrue only in FY 27
Company is expecting a mid-teens growth from the after sales mkt. Company has also launched brake pads in the after sales mkt - leveraging the Gabriel Brand
Disc: holding, biased, not SEBI registered
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