On valuation front, currently, the stock is trading at PE of 30.8x its FY19E EPS & 26.4x its FY20E EPS. We have a target of Rs 1480 per share.
Endurance Technologies is one of India’s leading automotive component manufacturing companies. It manufactures aluminum castings (including alloy wheels), suspension products, transmission products and brake systems. It is the largest aluminum die casting manufacturer in India.
Mandatory CBS & ABS in two wheelers - rule by government is an opportunity for demand of value added products. Three of the four segments - brakes, suspensions and aluminum castings are immune to electric and hybrid vehicles in future.
The company has 18 plants in India & 8 plants in Europe, two more plants coming up in India. On valuation front, currently, the stock is trading at PE of 30.8x its FY19E EPS & 26.4x its FY20E EPS. We have a target of Rs 1480 per share.Disclaimer: The author is Vice President - Equity Advisory, Anand Rathi Shares and Stock Brokers. The views and investment tips expressed by investment experts/broking houses/rating agencies on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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