Gabriel India zooms 51% thus far in July; should you buy, hold or sell?

Anand Rathi Share and Stock Brokers recommend a 'Buy' rating on Gabriel India with a target price of ₹1,400

Gabriel India share price: Shares of Gabriel India hit a new high of ₹1,061.60 on the BSE in Thursday’s intra-day trade in an otherwise weak market. The stock of the auto ancillary company is trading higher for the third day, surging 15 per cent during the period. In comparison, the BSE Sensex was down 0.23 per cent at 83,343 at 12:36 PM.

 

Thus far in July, Gabriel India’s share price appreciated by 51 per cent after the board approved a composite scheme of arrangement, involving Gabriel India, Asia Investments Pvt Ltd (AIPL), and Anchemco India Pvt Ltd (Anchemco). 

 

In three weeks, the stock price skyrocketed by 79 per cent from the level of ₹592.85 on June 19, 2025. 

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Gabriel India’s composite scheme of arrangement

As per the scheme announced on June 30, it will result in vesting AIPL’s automotive business undertaking, comprising Anchemco’s business (brake fluids, radiator coolants, diesel exhaust fluid / ad-blue, and PU/PVC-based adhesives) and investments in Dana Anand India Pvt. Ltd, Henkel ANAND India Pvt. Ltd and ANAND CY Myutec Automotive Pvt., Ltd into Gabriel. 

 

Gabriel India will issue 1,158 equity shares of ₹1 each for every 1,000 equity shares of ₹10 each held in AIPL to the shareholders of AIPL.

 

The scheme will accelerate profitable growth with better margins, creating substantial shareholder value through EPS accretion and higher return on equity, Gabriel India said. At a group level, the management said they have set a revenue target of ₹50,000 crore by 2030 and see Gabriel India leading the way. 

Brokerages have positive view on Gabriel India 

Anand Rathi Share and Stock Brokers recommend a 'Buy' rating on Gabriel India at a sum-of-target price of ₹1,400, up from ₹770 earlier. 

 

Simplification of group structure and realigning corporate structure to help unlock synergy and enhance competitive edge. Gabriel India will play a pivotal role in the transformation, serving as the group’s vehicle for future growth and platform, the brokerage firm said.  

  

Meanwhile, Elara Capital reiterates a ‘buy’ rating on Gabriel with a target price raised to ₹1,115 on the stock. In analysts' view, the greatest potential for re-rating for any auto ancillary company arises from the transition from a single- to a multi-product portfolio. 

 

Auto ancillaries have outperformed original equipment manufacturers (OEMs) in the past decade on increasing products, expansion in segments, expansion in geographies and inorganic expansion. Gabriel is a play on all four, the brokerage said.