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Buy Endurance Technologies; target of Rs 1478: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Endurance Technologies has recommended buy rating on the stock with a target price of Rs 1478 in its research report dated December 28, 2020.

December 28, 2020 / 04:00 PM IST
 
 
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Prabhudas Lilladher's research report on Endurance Technologies


We initiate coverage on Endurance Technologies (ENDU) with BUY rating and a target price of Rs1,478 (24x Mar23 EPS). ENDU is structurally placed to benefit from 1) global automotive trend of light weighting vehicles (will drive die-casting business), 2) machined and EV/hybrids in Europe (de-risk its business model), 3) dominant position in suspension of 2W/3W segments and 4) huge potential in nascent but technology enabled businesses such as transmission, brakes and after-market. ENDU’s strong focus is to drive content increase in its core castings business (100% machining), suspension business (premiumisation of 2Ws) and to build new product portfolio in its nascent businesses. We believe the stock is attractive given (i) outperformance in medium-to-long term led by deeper client-penetration levels, (ii) significant market share gains with new products/technologies such as ABS and (iii) new order wins for EV/hybrid segment in Europe. We believe market share gains in each segment and rising domestic penetration should drive revenue/EBITDA/PAT CAGR of 8.3%/11.4%/15.3% over FY20-23.



Outlook


We value the stock at 24x Mar23 earnings to arrive at a target price of INR 1,478. We initiate coverage with BUY rating.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

rabhu

Broker Research
first published: Dec 28, 2020 04:00 pm

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