Image Source : avatrade.fr
Endurance Technologies, a leading auto component supplier, has seen a rollercoaster ride in its stock performance. After peaking at ₹3,061 in June 2024, the stock corrected nearly 39% due to a high base effect and tariff-related concerns. However, it has since rebounded, recovering nearly half of that fall, and now trades at 43.3x FY25 EPS, slightly above its five-year average P/E of 42x.
Despite a muted FY25 for the auto sector, Endurance posted 15% CAGR in revenue and 22% CAGR in profit from FY22 to FY25. With 64% of revenue from the 2W segment, expected to grow in high single digits in FY26, and a net debt-free balance sheet, the fundamentals remain strong. Analysts suggest accumulating on 15% dips for long-term investors, citing robust cash flows, clean promoter holding, and new growth engines insulated from tariff shocks.
Key Highlights:
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Stock status: Recovered ~50% from 2024 peak correction
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Valuation: 43.3x FY25 EPS; slightly above 5-year average
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Revenue mix: 64% from 2W, 8% from 3W, rest from 4W
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Financials: Net debt-free, RoCE at 16.4%, strong cash conversion
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Outlook: Accumulate on dips; long-term hold recommended
Source: The Hindu BusinessLine – Endurance Technologies Stock Outlook
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