'Buy' Endurance Technologies Shares Maintains Motilal Oswal Citing Multiple Growth Drivers

Given Endurance Technologies's strong business franchise and robust management, the stock should continue to command premium valuation multiples in comparison to most domestic auto ancillary companies as there are only a handful of highquality, large-scale, multi-product auto component suppliers..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Given Endurance Technologies Ltd.’s strong positioning in the two-wheeler segment, it is the best proxy to play the India two-wheeler opportunity, taking into account the underlying trends of premiumization and an uptrend in scooters. On the back of the new customer wins (won orders worth Rs 43.29 billion since FY22, including new orders worth Rs 36.12 billion) and technology-led increase in content, we estimate Endurance Technologies to continue to outperform the underlying two-wheelers industry in India..As highlighted in the previous section, it has set a target to increase four-wheeler contribution to 45% of consolidated revenues by FY30 from 25% currently and has made material progress in segments like die-casting, suspensions and brakes. Its focus on ramping up its four-wheeler presence is likely to be amongst its key growth drivers going ahead.Further, the ABS regulation, as and when it becomes mandatory on all two-wheelers is likely to be another key growth driver for the company..Its Europe performance resilience has been commendable over the years and with the acquisition of Stoferle, it has further strengthened its presence in the region.Given Endurance Technologies's strong business franchise and robust management, the stock should continue to command premium valuation multiples in comparison to most domestic auto ancillary companies as there are only a handful of highquality, large-scale, multi-product auto component suppliers, in our view..We estimate Endurance Tecjhnologies to deliver a CAGR of ~18%/21%/20% in consolidated revenue/Ebitda/PAT over FY25-27 on account of healthy new order wins and its focus on ramping up presence in four-wheelers in a meaningful way going forward. If ABS were to be mandated in all two-wheelers as per the draft notification issued by MoRTH, it would open up a huge growth opportunity for players like Endurance Technologies.The stock trades at 40x/34x FY26E/FY27E consolidated EPS. We reiterate our Buy rating with a target price of Rs 3,311 (based on 36x Sep’27E consolidated earnings per share)..Click on the attachment to read the full report:.Stay 'Neutral' On Jubilant FoodWorks Maintains Motilal Oswal On Expensive Valuations — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Endurance Technologies Shares Maintains Motilal Oswal Citing Multiple Growth Drivers

Possible ABS mandate in two-wheelers provides a huge growth opportunity, adds the brokerage.

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