Buy Endurance Technologies; target of Rs 3215: Motilal Oswal

Motilal Oswal's research report on Endurance Technologies

Endurance Technologies (ENDU) delivered an in-line operational performance in 2QFY26. PAT miss was largely driven by higher-than expected depreciation and a higher tax rate in 2Q. We estimate a CAGR of ~17%/19%/18% in consolidated revenue/EBITDA/PAT over FY25-28 on account of healthy new order wins and its focus on ramping up presence in 4Ws in a meaningful way going forward. If ABS were to be mandated in all 2Ws as per the draft notification issued by MORTH, it would open up a huge growth opportunity for players like ENDU. The stock trades at 40x/33x FY26E/FY27E consolidated EPS. We reiterate our BUY rating with a TP of INR3,215 (based on 36x Sep’27E consolidated EPS).

Outlook

The stock trades at 40x/33x FY26E/FY27E consolidated EPS. We reiterate our BUY rating with a TP of INR3,215 (based on 36x Sep’27E consolidated EPS).