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* Diversification into Sunroof to reduce single product dependency: GIL has a leadership position in the suspension systems, supplying and catering to all segments such as 2W, 3W, PV, CV, and railways and is also having support from parent Anand Group. In order to foray into a new edge product which is agnostic to power terrain technology and healthy growth prospectus, GIL has forayed into Sunroof system. The demand for sunroofs remains robust.

* The price difference between panoramic and normal sunroofs is almost double and current import content is 50-60%. The company has technical collaboration and alliance with Inalfa Roof Systems for manufacturing sunroofs in the domestic automotive market. The company is clocking a production of 8000+ units/month. In recent development, JV formation has been rejected by DPIIT to form a JV, hence the current structure is running on royalty basis where Gabriel is paying royalty charges of 5%. Management expects to get the JV approval from PN3 very soon.

* Outlook: The stock is supported by: 1) the key beneficiary of increasing demand from SUV category; 2) foray into high growth and power terrain technology agnostic product like sunroof system (content per vehicle is 5-6x of shock absorber); 3) scaling up the technological capabilities; 4) steady revenue visibility in the aftermarket (export leading the show); 5) increasing share of business in PV segment; and 6) winning new orders from E-2W OEM and expanding capacity. We rate the GIL with ADD rating with a TP of Rs.548, based on 24x on FY26E EPS.

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