Buy Endurance Technologies; target of Rs 2592: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Endurance Technologies has recommended buy rating on the stock with a target price of Rs 2592 in its research report dated February 13, 2025.

Broker Research

February 14, 2025 / 13:07 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Endurance Technologies

Endurance Technologies consolidated revenue for Q3FY25 grew by 11.6% YoY, which was 3%/2% lower than PLe/consensus estimates. Gross profit increased by 6% YoY with a margin expansion of 302bps YoY to 42.9% (PLe:42.5%). EBITDA grew by 24.6% YoY while margin expanded was136bps YoY to 13 % (PLe: 13.6%; BBGe: 13.2%), suppressed by higher other expenses. PAT increased by 21.1% YoY; however, it was 13%/7% below PLe/consensus. We cut our estimate by ~3-5% to accommodate for subdued trend of volume growth in domestic 2W industry specifically in the motorcycle category for FY25.

Outlook

However, we remain optimistic about its growth prospects which shall be driven by capacity expansion across various business segments, a strong order book in both ICE and EV, and diversification benefits. Factoring this, we estimate its revenue/EBITDA/EPS to grow at a CAGR of 16%/21%/26% over FY24-27E and assign ‘BUY’ with a TP of Rs2,592 (earlier Rs2,880), valuing it at 28x on its Dec’26 EPS.

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