Gabriel shares extend fall for sixth day—what’s ailing the auto ancillary company?

Shares of Gabriel India Ltd extended their losing streak for the sixth straight session on Tuesday, November 18, sliding nearly 23% during this period. The counter, which once enjoyed broad bullish sentiment from analysts, has faced sudden downgrades from at least three domestic brokerages—Arihant Capital Markets, Asit C. Mehta Investment, and SMIFS Ltd.The shift in sentiment is visible in analyst recommendations as well. The number of ‘Sell’ calls has risen from none in May to 30% currently. Of the ten analysts tracking the stock on Bloomberg, four maintain a Buy rating, while the remaining 30% advise Hold.

A key concern weighing on the stock is stagnation in Gabriel’s sunroof business, driven by a lack of new order wins. This is expected to drag near-term topline growth. Consequently, the company’s earlier target of achieving ₹1,000 crore in sunroof revenue by FY30 is now likely to be delayed by one to two years, according to Managing Director Atul Jaggi in the company’s post-Q2 commentary.

In the EV two-wheeler segment, where Gabriel currently commands a dominant 65-70% market share owing to its first-mover advantage, the company expects competition to intensify. It aims, however, to sustain a market share of over 50% in the long run.Despite near-term headwinds, Gabriel’s core business outlook remains supported by strong order flows in both the two-wheeler and passenger-vehicle categories. The company recently secured three new Maruti platforms, including the upcoming “Victoris”, which is expected to strengthen its PV market share over the next year.

For the quarter ended September 2025, Gabriel India reported a standalone net profit of ₹61 crore, up 15% year-on-year, supported by a matching rise in net revenue to ₹1,066 crore. EBITDA margins improved 10 bps YoY to 8.7%, while sunroof margins remained steady at 16.5%.

Despite the stock’s recent correction and the wave of downgrades, the consensus target price still stands at ₹1,238—implying a 26% upside from the current level of ₹984 per share.