Multibagger stock: Gabriel India share price jumps 79% in 13 sessions. What's next for this auto ancillary stock?

Multibagger stock: Gabriel India share price has experienced a positive trend for the 13th consecutive session, increasing by 3% during Thursday's trading. Over the past 13 sessions since June 23, Gabriel India share price has surged approximately 79%. The company recently revealed that its board of directors has approved a notable investment of ₹26.83 crore in Jinhap Automotive India Private Limited (JAIPL).

This strategic decision will lead to the formation of a joint venture with South Korea's Jinos Co, Ltd, positioning JAIPL as a subsidiary of Gabriel India with a 51% ownership stake, with the goal of expanding into the automotive and industrial fasteners sector.

According to ICICI Direct Research, the fasteners industry is relatively small, with the automotive sector being the primary consumer since fasteners play a crucial role in vehicle assembly, safety, and weight reduction. The sector is becoming more advanced, emphasizing the development of high-performance, corrosion-resistant, and lightweight fasteners to comply with changing standards.

Notable listed companies in India's fastener market include Sundram Fasteners, Sterling Tools, and Simmonds Marshall, all of which provide a diverse array of fasteners to both local OEMs and international markets. The industry demonstrates capital efficiency and achieves double-digit EBITDA margins.

Considering the limited size of opportunities, the brokerage does not seem particularly optimistic about the joint venture announcement from Gabriel, which is progressively enhancing its offerings by supplying technologically advanced auto components.

Following a significant rise recently due to a corporate restructuring initiative, Gabriel India's growth potential appears to be limited since many positive aspects are already reflected in its stock price.

Anand Rathi Research highlighted in its report that the company represents a significant advancement in achieving the strategic vision of the group.

According to Anand Rathi, the simplification of the group’s structure and the realignment of the corporate framework aim to unlock synergies and boost competitive advantage. Gabriel India is set to play a crucial role in this transformation, acting as the group's engine for future growth and a foundational platform.

“We recommend a Buy rating at a sum-of-target price of ₹1,400,” added Anand Rathi in its report.

According to Anshul Jain, Head of Research at Lakshmishree Investments, after a massive 77% surge in just 10 days, Gabriel India share price has now broken out of a six-day box pattern at ₹1,050, extending its strong momentum. While the rally does look overstretched in the short term, this breakout could still push the stock towards the ₹1,115 zone if buying interest persists.

“On the downside, immediate support lies at ₹1,000 — a crucial level to watch. Any close below ₹1,000 could trigger a sharp slide, so traders should trail stops accordingly to protect gains,” said Jain.

Further, Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, added that Gabriel India share price has shown strong traction since the beginning of June, nearly doubling from ₹550 to ₹1,050. Even in the last three sessions, it has maintained strong momentum. The overall bias remains positive; however, given the overbought conditions, a buy-on-dips approach is advisable. Immediate support is placed at ₹950, while resistance is seen around ₹1,200.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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