Buy Endurance Technologies; target of Rs 3050: Motilal Oswal

Buy

Motilal Oswal's research report on Endurance Technologies

We met with Endurance Technologies’ (ENDU) management to understand the outlook for its key segments. While the company awaits clarity from the government on its recommendation of mandatory ABS on all 2Ws, it is likely to continue outperforming industry growth on the back of the ramp-up of: 1) the new alloy wheel plant at Bidkin; 2) dual-channel ABS and the new brakes facility in Chennai; and 3) the inverted front forks business. Four-wheelers will be a key growth driver going forward, as the company continues to focus on increasing the segment’s contribution to 45% from the current 30%. It has already won orders in die castings, brakes, and transmissions, and is awaiting its first order win in suspensions. Beyond this, the company has developed competence in adjacent segments, with supplies expected to start soon for solar dampers, battery pack assembly, and aluminum forgings. With the Stoferle acquisition and healthy new order wins, we expect steady growth in its European business despite the adverse macro environment. We estimate a CAGR of ~16%/17%/16% in consolidated revenue/EBITDA/PAT over FY25-28.

Outlook

The stock trades at 33.6x/29x FY27E/FY28E consolidated EPS. We reiterate our BUY rating with a TP of INR3,050 (based on 36x Sep’27E consolidated EPS).

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Endurance Technologies - 15122025 - moti