Gabriel India Ltd Valuation Shifts Signal Renewed Price Attractiveness Amid Sector Dynamics

Valuation Metrics: From Expensive to Fair

Gabriel India’s current price-to-earnings (P/E) ratio stands at 50.56, a figure that, while still elevated, marks a moderation from previous levels that had classified the stock as expensive. The price-to-book value (P/BV) ratio is at 10.12, signalling a premium but one that aligns more closely with sector norms compared to prior valuations. The enterprise value to EBITDA (EV/EBITDA) ratio is 30.84, indicating a high valuation relative to earnings before interest, tax, depreciation and amortisation, yet this too has softened relative to historical peaks.

These valuation adjustments have prompted MarketsMOJO to upgrade Gabriel India’s Mojo Grade from Hold to Buy as of 03 Nov 2025, reflecting improved price attractiveness and confidence in the company’s earnings quality and growth prospects.

Comparative Sector Analysis

Within the Auto Components & Equipments industry, Gabriel India’s valuation now sits in a more balanced position relative to peers. For instance, Endurance Technologies is rated as Attractive with a P/E of 37.94 and EV/EBITDA of 19.31, while Motherson Wiring is still considered Expensive with a P/E of 46.74 and EV/EBITDA of 27.94. TVS Holdings stands out as Very Attractive with a P/E of 18.99 and EV/EBITDA of 7.05, highlighting the range of valuations within the sector.

Gabriel India’s PEG ratio of 4.06, although higher than some peers, reflects the market’s expectation of sustained growth, supported by its strong return on capital employed (ROCE) of 25.81% and return on equity (ROE) of 20.01%. These metrics underscore the company’s operational efficiency and profitability, justifying a premium valuation to some extent.

Price Performance and Market Context

Gabriel India’s stock price currently trades at ₹899.25, down 2.13% on the day from a previous close of ₹918.85. The 52-week high is ₹1,386.45, while the low is ₹387.05, indicating significant appreciation over the past year. Despite a recent short-term correction, the stock has delivered exceptional long-term returns, with a 1-year return of 111.34%, vastly outperforming the Sensex’s 6.56% gain over the same period.

Over a 3-year horizon, Gabriel India has surged 394.50%, compared to the Sensex’s 33.80%, and over 10 years, the stock has appreciated by an extraordinary 986.05%, dwarfing the benchmark’s 233.68%. This performance highlights the company’s strong growth trajectory and resilience in a competitive sector.

Financial Strength and Dividend Yield

Gabriel India’s dividend yield remains modest at 0.54%, reflecting the company’s focus on reinvestment and growth rather than high payout ratios. Its EV to capital employed ratio of 10.24 and EV to sales of 2.95 further illustrate a valuation that balances growth expectations with operational scale.

The company’s robust ROCE of 25.81% and ROE of 20.01% are indicative of efficient capital utilisation and strong profitability, factors that support the recent upgrade in valuation grade and Mojo Grade to Buy.

Peer Valuation Snapshot

Comparing Gabriel India with its peers reveals a nuanced valuation landscape. While companies like TVS Holdings and Endurance Technologies offer more attractive valuations, others such as JBM Auto (P/E 60.15) and ZF Commercial (P/E 53.28) remain expensive. Gabriel India’s shift to a fair valuation grade places it in a competitive position for investors seeking quality exposure in the auto components sector without paying a prohibitive premium.

Outlook and Investment Considerations

Gabriel India’s valuation recalibration from expensive to fair is a significant development for investors evaluating entry points in the auto components sector. The company’s strong fundamentals, including high ROCE and ROE, combined with its impressive long-term returns, underpin the recent upgrade to a Buy rating by MarketsMOJO.

However, investors should remain mindful of the relatively high P/E and PEG ratios, which suggest that growth expectations are already priced in to some extent. The stock’s recent underperformance relative to the Sensex over the past month (-15.28% vs -4.66%) and year-to-date (-10.91% vs -4.32%) may reflect short-term market volatility or profit-taking after a strong rally.

Given the company’s leadership in the Auto Components & Equipments sector and its improving valuation profile, Gabriel India presents a compelling case for investors with a medium to long-term horizon seeking exposure to quality mid-cap growth stocks.

Valuation Summary

Key valuation metrics for Gabriel India Ltd as of 27 Jan 2026:

• P/E Ratio: 50.56 (Fair valuation grade)


• Price to Book Value: 10.12


• EV to EBIT: 39.68


• EV to EBITDA: 30.84


• PEG Ratio: 4.06


• Dividend Yield: 0.54%


• ROCE: 25.81%


• ROE: 20.01%

These figures reflect a company that commands a premium but is increasingly viewed as fairly valued given its growth prospects and operational strength.

Conclusion

Gabriel India Ltd’s transition to a fair valuation grade, coupled with its strong financial metrics and stellar long-term returns, marks a pivotal moment for investors. The stock’s recent price correction offers a more attractive entry point relative to its historical highs and peer valuations. With a Mojo Grade upgrade to Buy and a solid industry position, Gabriel India remains a key stock to watch in the Auto Components & Equipments sector.

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