Shares of Gabriel India Ltd soared to a new all-time high of Rs 1,061.60 on the BSE in Thursday’s intra-day trade, defying the broader market weakness. The stock surged over 15 per cent in just three sessions and has now gained 51 per cent in July alone. Since June 19, Gabriel India has rallied 79 per cent, making it one of the top-performing mid-cap stocks in the auto ancillary space.
At 12:36 PM, Gabriel India was trading at Rs 1,058, up nearly 1.9 per cent, while the BSE Sensex was down 0.23 per cent at 83,343.
Why Gabriel India shares are rising
The sharp rally comes after the company’s board approved a composite scheme of arrangement involving Gabriel India, Asia Investments Pvt Ltd (AIPL), and Anchemco India Pvt Ltd. Announced on June 30, the restructuring plan aims to integrate AIPL’s automotive business — including Anchemco’s portfolio of brake fluids, radiator coolants, diesel exhaust fluid (AdBlue), and adhesives — with Gabriel India.
As part of the merger, 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, effectively consolidating ownership and operations.
Management sees EPS accretion, higher margins post-merger
Gabriel India’s management said the transaction is expected to accelerate profitable growth, improve operating margins, and deliver EPS accretion. The company also expects to see enhanced return on equity (RoE) from the combined entity.
At the group level, the management has outlined an ambitious revenue target of Rs 50,000 crore by FY30, with Gabriel India leading the charge across its domestic and global business lines.
What investors should watch next
While investor sentiment remains bullish, analysts note that the stock’s steep run-up now puts the spotlight on execution and integration efficiency. “The market is pricing in long-term synergy benefits, but performance over the next two quarters will be key,” said a Mumbai-based analyst.
Gabriel India’s strong rally and merger update come at a time when several auto component stocks are seeing renewed investor interest amid rising demand, localisation efforts, and premiumisation trends in the automotive sector.
