Target: ₹2,096
CMP: ₹1,931.25
During Q3-FY24, Endurance Technologies delivered a lower-than-expected performance, however compared to industry growth, the revenue growth of the domestic business was better off. This was led by new order wins and increase in premium content such as the suspension share of inverted front fork is better than last year.
Going forward, suspension, brakes and alloy wheels will be key growth drivers. On the EV front, Maxwell performance was impacted due to delay in launches by EV OEMs. The company is also focusing more on aftermarket export business and aims to achieve 10 per cent of sales by 2028.
Endurance Technologies has a promising growth story with various positive factors such as the increasing premiumization content in the 2W (125CC+ category), winning new orders from the non-automotive segment in the casting division, recovery in European business and margin expansion (due to lower energy cost), increasing share of EV order book, and increasing alloy wheel capacity in tandem with growing demand for alloy wheels.
However, the stock has seen decent run up in the past and factoring most of the positives in the valuation which has left limited upside.