Gabriel Indian gets buy rating by Kotak Securities
Posted on 19th January 2018 |
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| We met with the management of Gabriel India. The company is optimistic of healthy growth in revenues on the back of repeat business and new order wins. Exports and aftermarket continue to stay a key focus area. In exports, the focus is both on OEM’s and aftermarket.Gabriel continues to explore inorganic growth opportunities. Management is committed towards double-digit EBITDA margin. Given land bank at existing plant, company can go for brownfield expansions, if required. We are positive on the overall volume growth of auto industry over the next two-three years. With 83% revenue dependence on OEM’s, we expect healthy revenue growth for the company over FY17-FY20E. We expect gradual uptick in EBITDA margins over FY18-FY20E. We introduce FY20E earnings and upgrade the stock to BUY (earlier ACCUMULATE) with revised price target of R222 (earlier R212). We value the stock at 20x PE on FY20E earnings (earlier valued at 22x PE on FY19E earnings). With 86% of revenues coming in from sales to auto OEM’s, Gabriel’s revenue growth significantly depends upon the auto demand in India. So far this year, the overall demand has been good and that has reflected in Gabriel’s strong revenue growth in 1HFY18. Management remains optimistic on healthy revenue growth as the company continues to get repeat business and incremental revenue to come from new business win. Further, the company also benefits from deriving business from players that are growing a high rate. Gabriel’s key clients include TVS Motors, Maruti Suzuki, Bajaj Auto, Yamaha India, Tata Motors, Mahindra and Mahindra and Honda Motorcycle and Scooters India. Company’s enjoys highest share of business with TVSM and ~15-20% share of business with Bajaj Auto. Gabriel’s revenue dependence is de-risked as no individual clients contributes to more than 20% of the overall revenues.The company is focusing on growing its presence in export market. Currently, exports form 3% of the company’s revenue (10% if INR exports are included) and the company is focusing on growing its export revenues going ahead. In export aftermarket, the company see’s opportunity in exports geographies of Indian OEM’s, global chains and other markets with high OEM presence. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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