Accumulate Endurance Technologies; target of Rs 1872: Geojit

Geojit's research report on Endurance Technologies

Endurance Technologies Ltd. is one of India’s leading automotive component manufacturers, with operations in the country and Europe. It mainly caters to domestic two- and three-wheeler OEMs and supplies aluminium casting products to four-wheeler OEMs in Europe. The company’s consolidated revenue grew 15.9% YoY to Rs. 2,450cr in Q1FY24, thanks to increased domestic vehicle sales and new-car registrations in Europe. EBITDA increased 38.2% YoY to Rs. 338cr, and margin expanded 220 bps YoY to 13.8%. A robust order pipeline, new business wins, a strong technical alliance with Maxwell in the electric vehicle market, softening material costs, and continued capacity expansion should drive the company’s earnings performance in the future. Some of the new business wins are expected to start contributing to revenue growth in the near term.

Outlook

Hence, we recommend Accumulate rating on the stock with a target price of Rs. 1,872 based on a multiple of 27x FY25E adjusted earnings per share.