Result Update: Gabriel India Ltd - BUY - TP Rs.190 - Kotak

Gabriel reported healthy operational performance in 1QFY18. Revenues during the quarter came in at Rs4,189mn, 13.7% growth over 1QFY17. EBITDA margin at 9.6% remained static YoY. Lower other income and higher tax provision limited net profit to 2% YoY. Revenues and EBITDA were 5% and 8% ahead of our estimates. However, PAT was 3% below estimate due to low other income and high tax provision. Gabriel's ~87% of the revenues are dependent on the two wheeler and passenger car industry. We expect the two wheeler and passenger car industry to witness strong growth in FY18/FY19. On the back of expected robust growth in revenues and company's focus on controlling cost, we expect EBITDA margin to improve further in FY18/FY19. We retain BUY on the stock with revised price target of Rs190 (earlier Rs149)

Shares of GABRIEL INDIA LTD.-$ was last trading in BSE at Rs.161.8 as compared to the previous close of Rs. 162.05. The total number of shares traded during the day was 48604 in over 1143 trades.

The stock hit an intraday high of Rs. 165 and intraday low of 159.25. The net turnover during the day was Rs. 7873399.

Source : Equity Bulls

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