Prabhudas Lilladher has given Buy recommendation for Endurance Technologies with a target price of Rs. 1919 in its research report issued on Feb 10, 2022

Prabhudas Lilladher’s research report on Endurance Technologies

However, new business win remained strong for India (Rs 5.9b) and EU (Euro 53.9mn) in 9M. Company also forayed into new products like Drive shaft (commencing supply from May’22) and non-auto casting (new orders ~1b); also won orders from EV worth Rs 1.4b. We believe ENDU will continue to outperform the industry led by i) Addition of new and value added products (ABS, Drive shaft business and nonautomotive castings, clutch and brakes for 200cc+ MC etc.) ii) Ability to add new customers as well as increased penetration with existing customers (PV share in standalone revenue grew by 1%) and iii) Increased share of AM & Exports. Furthermore, company’s balance sheet is well placed to cash on inorganic opportunities, going ahead.

Outlook

We tweak FY23/24 EPS by 10%/1% and upgrade to ‘BUY’ after recent correction in the stock at revised TP of Rs1,919 (v/s Rs1,981) based on 29x (28x earlier) Dec’23 EPS, to factor in growth from new product addition, strong FCF generation and improving return ratios. ENDU’s 3QFY22 S/A revenues declined 1%YoY at Rs14.9b 7% ahead of PLe against 2W industry decline of 19.7%, in volume terms. Europe’s business revenues were impacted by low scale of operations due to chip shortage and declined 19.4%YoY at Euro 47.6mn.

More Info on Trent

At 12:15 hrs Endurance Technologies was quoting at Rs 1,320.50, down Rs 68.30, or 4.92 percent.

It has touched an intraday high of Rs 1,400.00 and an intraday low of Rs 1,316.70.

It was trading with volumes of 9,982 shares, compared to its thirty day average of 4,788 shares, an increase of 108.48 percent.

In the previous trading session, the share closed down 2.45 percent or Rs 34.95 at Rs 1,388.80.

The share touched its 52-week high Rs 1,980.95 and 52-week low Rs 1,250.00 on 08 November, 2021 and 15 April, 2021, respectively.

Currently, it is trading 33.34 percent below its 52-week high and 5.64 percent above its 52-week low.

Market capitalisation stands at Rs 18,574.53 crore.

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