Accumulate Endurance Technologies; target of Rs 2346: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Endurance Technologies with a target price of Rs 2346 in its research report dated May 17, 2024.

Broker Research

May 20, 2024 / 16:50 IST

Accumulate

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Endurance Technologies

Endurance Technologies consolidated revenue for Q4FY24 grew by 20.2% YoY, in-line with PLe/BBGe estimates which was led by strong growth across all product verticals. EBITDA grew by significantly by 36.4% YoY while margin expanded by ~170bps YoY to 14.5% (PLe: 12.3%; BBGe: 12.5%), owing to better operating leverage as a result of increase in volume, improvement in product mix and a one-time gain. Strong overall performance and rise in other income led its APAT to increase by 54% YoY. Additionally, it is setting up a new greenfield plant with a capacity of 900 MT to cater to 4W companies as a part of its revenue diversification. ENDU shall witness strong growth given (1) Positive sentiments in 2W industry shall improve its overall volume, (2) ABS capacity ramp-up which shall will benefit from premiumization trend in 2W industry (3) increasing the share of 4W products and strong potential in after-market products and exports.

Outlook

Factoring this, we increase our FY25E/FY26E EPS estimates by 4.5%/18.4% owing to strong commentary and healthy order book. We upgrade our rating from ‘HOLD’ to ‘ACCUMULATE’ with a TP of Rs 2,346 (earlier Rs 1,980), valuing it at 26x on its FY26E EPS.

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