Prabhudas Lilladher has given Buy recommendation for Endurance Technologies with a target price of Rs. 1662 in its research report issued on Feb 10, 2021
Prabhudas Lilladher’s research report on Endurance Technologies
ENDU’s 3QFY21 consol results exceeded our revenue/EBITDA/PAT estimates by 9%/7%/9% led by beat in S/A and Europe business along with better margin delivery. We believe, driven by new customer wins and technology led increase in content, ENDU will continue to outperform the underlying 2W industry in India. It is targeting significant capacity additions in high value added products like disc brakes and alloy wheels to not only capture import substitute opportunities but to offer price competitive products also. With gradual increase in average kit value, we expect revenue/EBITDA/PAT to grow at 10.4%/13.8%/18% CAGR over FY20-23E.
We raise FY22/23 EPS by 6.6%/8% to factor in increased volumes from brakes and alloy wheel segment. Maintain BUY with revised TP of Rs1,662 (v/s Rs1,540).