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Economic Times
02-07-2025
- Automotive
- Economic Times
Gabriel India shares surge 44% in 2 days, hit 52-week high on restructuring plan
Shares of Gabriel India surged 20% on Wednesday to hit a fresh 52-week high of Rs 1,011.45 on the BSE, extending their two-day rally to 44% as investors cheered the company's recently announced strategic restructuring plan. ADVERTISEMENT The rally, which began on Tuesday, July 1, was triggered by Gabriel India's announcement of a composite scheme of arrangement approved by its Board of Directors on June 30. Under the scheme, Gabriel will consolidate key group operations by absorbing the automotive business undertaking of Asia Investments Private Limited (AIPL), including its subsidiary Anchemco India Private Limited. The acquired business spans product lines such as brake fluids, radiator coolants, diesel exhaust fluid (DEF or AdBlue), and PU/PVC-based adhesives. The deal also brings under Gabriel's fold AIPL's strategic investments in Dana Anand India Private Limited, Henkel ANAND India Private Limited, and ANAND CY Myutec Automotive Pvt Ltd. To facilitate the merger, Gabriel will issue 1,158 equity shares of Re 1 each for every 1,000 equity shares of Rs 10 each held in AIPL by its Tuesday, the stock had already surged 20% to Rs 842.75 in early trade, rising sharply from its previous close of Rs 668.70. ADVERTISEMENT Since then, buying interest has intensified. With Wednesday's gains, Gabriel India's share price has now climbed 110.4% over the past year, risen 101.8% in the last six months, jumped 70.7% in the past three months, and added 53.6% over the last month a technical perspective, Gabriel India remains in strong uptrend territory. The stock is trading above all key short-term and long-term moving averages, including the 5, 10, 20, 30, 50, 100, 150, and 200-day SMAs, signaling entrenched bullish momentum. ADVERTISEMENT However, some caution may be warranted. The 14-day Relative Strength Index (RSI) stands at 84, significantly above the threshold of 80, indicating the stock is now in overbought territory and may be due for a current levels, Gabriel India trades at a price-to-earnings ratio of 41.18 and a price-to-book ratio of 8.53, reflecting elevated investor expectations and strong sentiment following the restructuring plan. ADVERTISEMENT Also read | Gabriel India share price surges 20%, hits 52-week high on strategic restructuring plan (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
02-07-2025
- Automotive
- Time of India
Gabriel India shares surge 44% in 2 days, hit 52-week high on restructuring plan
Shares of Gabriel India surged 20% on Wednesday to hit a fresh 52-week high of Rs 1,011.45 on the BSE, extending their two-day rally to 44% as investors cheered the company's recently announced strategic restructuring plan. The rally, which began on Tuesday, July 1, was triggered by Gabriel India's announcement of a composite scheme of arrangement approved by its Board of Directors on June 30. Under the scheme, Gabriel will consolidate key group operations by absorbing the automotive business undertaking of Asia Investments Private Limited (AIPL), including its subsidiary Anchemco India Private Limited. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like My Doctor Told Me To Take A Spoonful Of This Every Morning. (The Results Were Crazy) Gundry MD Learn More Undo The acquired business spans product lines such as brake fluids, radiator coolants, diesel exhaust fluid (DEF or AdBlue), and PU/PVC-based adhesives. The deal also brings under Gabriel's fold AIPL's strategic investments in Dana Anand India Private Limited, Henkel ANAND India Private Limited, and ANAND CY Myutec Automotive Pvt Ltd. To facilitate the merger, Gabriel will issue 1,158 equity shares of Re 1 each for every 1,000 equity shares of Rs 10 each held in AIPL by its shareholders. Stock on a tear Live Events On Tuesday, the stock had already surged 20% to Rs 842.75 in early trade, rising sharply from its previous close of Rs 668.70. Since then, buying interest has intensified. With Wednesday's gains, Gabriel India's share price has now climbed 110.4% over the past year, risen 101.8% in the last six months, jumped 70.7% in the past three months, and added 53.6% over the last month alone. Technical indicators flash overbought From a technical perspective, Gabriel India remains in strong uptrend territory. The stock is trading above all key short-term and long-term moving averages, including the 5, 10, 20, 30, 50, 100, 150, and 200-day SMAs, signaling entrenched bullish momentum. However, some caution may be warranted. The 14-day Relative Strength Index (RSI) stands at 84, significantly above the threshold of 80, indicating the stock is now in overbought territory and may be due for a pullback. At current levels, Gabriel India trades at a price-to-earnings ratio of 41.18 and a price-to-book ratio of 8.53, reflecting elevated investor expectations and strong sentiment following the restructuring plan. Also read | Gabriel India share price surges 20%, hits 52-week high on strategic restructuring plan ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business Standard
01-07-2025
- Automotive
- Business Standard
Gabriel India soars after announcing strategic business restructuring scheme
Gabriel India hit an upper limit of 20% at Rs 842.90 after the company's board approved a comprehensive restructuring scheme aimed at transforming the company into a diversified mobility solutions provider. The plan involves the amalgamation of Anchemco India Private Limited into Asia Investments Private Limited (AIPL), followed by the demerger of AIPL's automotive business into Gabriel India. As part of the transaction, Gabriel India will issue 1,158 equity shares of Rs 1 each for every 1,000 equity shares of Rs 10 each held in AIPL. The transaction qualifies as a related party arrangement and is being executed on an arms length basis. The proposed composite scheme of arrangement is expected to take 10 to 12 months for completion, assuming timely approvals. The transaction includes the manufacturing operations of Anchemco, which produces brake fluids, radiator coolants, diesel exhaust fluid (DEF), AdBlue, and PU/PVC-based adhesives. The scheme will also bring AIPLs strategic investments in Dana Anand India, Henkel ANAND India, and ANAND CY Myutec Automotive under Gabriel India. According to the filing, this move is designed to streamline the group structure, eliminate intra-group transactions, enhance operational efficiency, and reposition Gabriel India as a diversified and technology-driven mobility solutions provider. The integration is expected to support expansion into new product segments, geographies, and the aftermarket and railway categories. The shareholding structure of Gabriel India will shift post-merger, with promoter shareholding increasing from 55% to 63.53%, while public shareholding will decline from 45% to 36.47%. The equity shares issued under the scheme will be listed on both BSE and NSE. The completion of the transaction is subject to necessary approvals from shareholders, creditors, regulatory authorities, and the National Company Law Tribunal (NCLT). The company expects the process to conclude within 10 to 12 months, assuming timely clearances. Anjali Singh, chairperson of Gabriel India, said: "This Scheme of Arrangement is in line with our Groups strategy towards re-aligning the corporate structure, which will result in its improved competitive position and Gabriel India will play a pivotal role. We see Gabriel India as ANAND Groups vehicle for future growth with its ability to provide a platform to capture the value creation for all its shareholders. At a Group level, we have set ourselves a revenue target of Rs. 50,000 crores by 2030 and we see Gabriel India leading the way." Atul Jaggi, managing director of Gabriel India, added: "Gabriel India had traditionally been a single product company within suspension parts and shock absorbers as its key product portfolio. In 2023, we added Sunroof business as a first step towards our strategic intent to be a multi-product company. Now, with these strategic initiatives we shall have a presence in manufacturing and sale of multiple products such as brake fluid, radiator coolants, diesel exhaust fluid (DEF) / Ad-blue for 2W, 3W, 4W and truck applications and PU/ PVC based adhesives. Additionally, with equity holdings in Dana Anand, Henkel ANAND and ANAND CY Myutec Automotive, Gabriel participates in drivetrain products including transmissions for EVs, Body- In-White and NVH products and solutions, as well as automotive synchronizer rings and aluminum forgings. This will strengthen Gabriels positioning as a preferred partner for global OEMs and expands its aftermarket presence." Gabriel India is one of India's most trusted names in automotive component manufacturing. It has evolved as a market leader in ride control products, including shock absorbers, struts, and front forks, serving every major automotive segment - two and three-wheelers, passenger cars, commercial vehicles, and railways. On a consolidated basis, net profit of Gabriel India rose 31.24% to Rs 64.36 crore while net sales rose 17.03% to Rs 1073.15 crore in Q4 March 2025 over Q4 March 2024.
Indian Express
30-06-2025
- Automotive
- Indian Express
16x PE, 20% EPS growth, Rs 1,000 crore in cash: Why is Gulf Oil still under the radar?
Gulf Oil Lubricants Ltd (GOLIL) delivered a record profit of Rs 362 crore in FY25, an 18% growth compared to FY24. Yet, the stock has barely moved 5% over the last year. Behind the muted stock is the company that is quietly shifting gears. Under its 'Unlock 2.0' strategy, the company is expanding beyond old-school engine oils into AdBlue — an emission control oil for BS6 Diesel engines — EV chargers, and a premium synthetic relaunch fronted by brand ambassador MS Dhoni. Yet despite this transformation and consistent operating margins, the stock trades at a modest 16x earnings, well below Castrol India's 22x multiple. So, the question is: for long-term investors, could this be a high-quality compounder hiding in plain sight? Or is it yet another value trap? Gulf Oil's financial performance over the last 5 years tells a story of steady growth and resilience. Annual revenue has more than doubled from Rs 1,652 crore in FY21 to about Rs 3,554 crore in FY25. Even the Covid pandemic barely stalled its progress. FY21 sales were flat but not broken, and by FY22, the topline zoomed 33% as economic activity rebounded. By FY25, the company posted a record revenue of Rs 3,554 crore (8% YoY growth) and net profit of Rs 362 crore (18% YoY). This consistent growth reflects both volume increases and pricing gains despite a high-inflation environment. In a market where cash-burning companies often grab investor attention, Gulf Oil lubricants is an exception. It has minimal debt (debt-to-equity ~0.26) and over Rs 1,000 crore cash against a market cap of Rs 6,000 crore. Over the last decade, only Rs 454 crore has been reinvested into the business. With 93% revenue from the domestic market and 85% of total sales exposure to the automotive segment, the auto cycle overwhelmingly drives volume growth. Between FY21 and FY25, Gulf Oil Lubricants doubled its revenue from Rs 1,652 crore to Rs 3,554 crore. The lift was powered by core–lubricant shipments, which rose from roughly 1.34 lakh kilolitres (KL) in FY22 to an estimated 1.52 lakh KL in FY25, a compound clip of about 4 per cent a year, which is 2-3x faster compared to the industry. The company has consistently increased its market share, helped by a distribution network covering over 85,000 outlets, from city service centres to rural bike stops. However, volume alone doesn't explain a 115 per cent revenue surge. Gulf Oil has also premiumised its mix and increased prices. Successive hikes in base-oil costs (tied to crude oil but not proportionately) — visible in FY22's inflation spike — were passed to customers without killing demand because the company was steering customers to higher-spec passenger-car oils and long-drain diesel grades that justify a fatter rupee per litre. The company projects revenue to grow at a 9-12% CAGR over FY23-33, even as decarbonisation trends intensify. AdBlue®, a urea-based fluid that helps diesel vehicles meet BS-VI norms by reducing NOx emissions, is now a significant revenue contributor. With BS-VI emission rules kicking in from April 2020, every new diesel truck, bus, and many SUVs now require AdBlue. This created a fast-growing market — Gulf entered this space and scaled quickly, from zero to 1.4 lakh kilolitres in FY25. With a total volume of 1.4 lakh KL at Rs 45-50/litre, AdBlue contributed an estimated Rs 600-700 crore to total revenue (Rs 3,600 crore) in FY25. However, its mid-single-digit margin is lower than the overall margin profile of the company. Management expects AdBlue volume growth to continue at 10-15% annually from this base. This partially explains why, over FY21 to FY24, the overall margin profile of GOLIL has declined. GOLIL is actively expanding its presence in the e-mobility ecosystem. The current investment in the EV segment stands at Rs 148 crore. However, most of these businesses are in the incubation stages, except Tirex Transmission, which hit EBITDA profitability in Q4FY25. GOLIL's EV-related portfolio includes: The company views these ventures as crucial for future growth, leveraging its brand strength, OEM relationships, and distribution network. GOLIL paid out 65% of its profits in dividends in FY25, offering a 2.95% yield. It has Rs 1,000+ crore cash on a market cap of about Rs 6,000 crore and is consistently gaining market share. It trades at 16.6x price-to-earnings, and has growth EPS of 20% in the last 3 years. However, if we remove 'other income', which is primarily interest income from the large cash balance (Rs 1,000 crore+), EPS growth is 16% compared to 20% pre-adjustment. If we further account for the fact that revenue growth has a high linkage with auto cycles, and that auto sales are showing signs of slowing down over the last few quarters, and that ICE to EV transition might render a bulk of lubricants the company's currently sells as obsolete, a multiple of 16.6x might not be 'cheap', unless the company deploys its large cash pile strategically — whether through buybacks or special dividends. So far, management has offered no clarity on this front. Despite consistent growth over the last 3 years, robust cash balance, and an optically low PE, GOLIL is reasonably priced. Yet, without 'triggers' such as sustained 16-18% EPS growth, and/or substantial dividends or buyback, the stock might remain stuck in neutral. Note: We have relied on data from and throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. Rahul Rao has helped conduct financial literacy programmes for over 1,50,000 investors. He also worked at an AIF, focusing on small and mid-cap opportunities. Disclosure: The writer or his dependents do not hold shares in the securities/stocks/bonds discussed in the article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
Time of India
26-06-2025
- Automotive
- Time of India
Inside Gulf Oil India's EV push, R&D drive and future roadmap
In a candid and wide-ranging conversation, Mr. Ravi Chawla, Managing Director of Gulf Oil Lubricants India, provided valuable insights into the company's evolving strategy. The discussion delved into Gulf Oil's initiatives in the electric mobility space, innovations in lubricants, strategic partnerships with OEMs, and the company's future growth prospects in India. Below is a comprehensive overview of the key takeaways from the interaction. Adapting to the EV Era Gulf Oil India is firmly pivoting toward electric mobility. What started as a traditional lubricant player is now transforming into a comprehensive solutions provider for EVs. The representative explained that while conventional engine oil is becoming obsolete in EVs, a significant portion of fluids — including transmission oils, coolants, greases, and brake fluids - remains essential. Gulf has already started supplying EV-specific fluids to several electric three-wheeler and component manufacturers. Interestingly, the company is not just limiting itself to lubricants. Gulf has entered the EV charger space, supplying AC chargers (3.3kW units) to OEMs like MG Motor India. These chargers will be bundled with EVs and reach customers directly. The company is also actively engaging with other OEMs such as Tata Motors and Hyundai, signaling broader ambitions in the growing EV infrastructure domain. OEM Collaborations and Future Plans Gulf currently has partnerships with over 40 OEMs across segments, especially in two-wheelers and diesel engine oils. Their collaborations span products like lubricants, AdBlue for diesel vehicles, and now EV fluids and chargers. The representative hinted at an upcoming major tie-up with a global carmaker, which could further boost Gulf's presence in the passenger vehicle space. Although Gulf does not yet have major OEM tie-ups in the passenger car motor oil (PCMO) segment, it has an ongoing supply arrangement with Kia's service centers and previously supplied fluids to Tata Motors. Plans are in motion to increase footprint in this area, which currently contributes less than 5% to their market share — signaling a significant growth opportunity. R&D and Innovation Hub in India India serves as the primary R\&D base for Gulf's global operations in the automotive and industrial segments. The company conducts 90-95% of its research activities here, with additional support from international centers in the Middle East, Latin America, and Singapore. Gulf has historically led the industry with innovations such as India's first long-drain engine oil for commercial vehicles, increasing oil change intervals from 36,000 km to 80,000 km. The company also developed tractor oils with extended service intervals, and motorcycle oils that last up to 10,000 km — a rarity in the segment. These innovations reflect Gulf's brand focus on endurance and efficiency. Market Performance and Growth Strategy Gulf Oil India is outpacing the market with 2–3X growth in most segments. While the overall lubricant market grows at 3–4% annually, Gulf is aiming for 5–16% growth in passenger car lubricants, and 3X market growth in industrial and B2B categories. Key pillars of this growth strategy include: * Strengthening OEM alliances in the electric mobility space* Expanding R&D capabilities and accelerating innovation* Growing market share in under-represented segments like passenger car oils* Deepening its presence in premium product categories* Supporting the shift toward sustainable and long-drain lubricant solutions Surprisingly, Gulf also has a small but growing two-wheeler battery business, though its market share currently stands at just 3%. The expansion began as an extension of Gulf's retail lubricant outlets, which also started selling batteries. However, the company clarified that it has no immediate plans to enter the four-wheeler or commercial vehicle battery segment, citing infrastructure and distribution differences. Branding efforts have also seen a shift. While Gulf was historically associated with commercial vehicles, the company is now aggressively promoting its two-wheeler products through brand ambassadors like MS Dhoni, Smriti Mandhana, and Hardik, targeting different segments such as scooters, motorcycles, and SUVs. Participation in events like India Bike Week (IBW) reflects the company's growing focus on premium and synthetic oils for performance-conscious consumers. Global Standing and Exports In the global Gulf Oil network, India plays a leading role in automotive and industrial lubricants, even though other segments like marine oils may be larger by volume. The Indian arm exports about 5% of its total output to over 25 countries, including regions in Latin America and neighboring Asian countries. Motorsports & Premium Aspirations Gulf's iconic motorsport legacy isn't just confined to international racing circuits like Formula One. In India, the company is exploring expanding its presence in motorsport partnerships, particularly in two-wheeler and adventure biking communities, as part of its strategy to premiumize and digitally transform its brand. The Road Ahead Gulf Oil India's future lies in agile adaptation and category expansion. From launching cutting-edge EV fluids to pushing into high-growth segments like PCMO and industrial lubricants, the company aims to leapfrog competitors through a combination of innovation, strategic partnerships, and strong customer trust. With a robust R\&D ecosystem, deep OEM relationships, and a clear roadmap for the future, Gulf is not just responding to market shifts — it's actively shaping them. As electric mobility accelerates, Gulf Oil India appears well-positioned to lead the charge. Also with its bold ambition, expanding portfolio, and robust OEM network, Gulf Oil India is not just keeping pace with the evolving automotive landscape — it's actively shaping it.
