Buy Endurance Techno., target price Rs 2450: IIFL Securities

On June 05, IIFL Securities issued a 'buy' recommendation for Endurance Technologies, setting a target price of Rs 2450. This represents a potential upside of approximately 3% from the current market price of Rs 2378. The recommendation is based on the company's strong fundamentals, including its leadership in the auto component industry, diverse product portfolio, and healthy financial performance. Investors may consider this buy call for potential gains in the near to medium term.

About Endurance Techno.:

Endurance Technologies Limited is an India-based automotive component manufacturing company. It operates in two segments: Aluminium Die-Casting and Suspension. The company manufactures a range of aluminium die-casting components, such as cylinder heads, transmission cases, engine blocks, and suspension components, such as control arms, knuckles, and stabilizer bars. Endurance Technologies supplies its products to various automotive original equipment manufacturers (OEMs), including Maruti Suzuki, Mahindra & Mahindra, Tata Motors, and Ford India. The company has manufacturing facilities in India, Mexico, and Thailand.

52 Week Price Trend:

Endurance Technologies (NSE: ENDURANCE) surged by over 10% to trade at Rs 2378, hitting a 52-week high. The auto component manufacturer's stock has gained 100% in the past year and is currently trading at a premium to its 52-week low of Rs 1171.6. Endurance Technologies is a leading supplier of automotive components to global OEMs such as Honda, Ford, and Volkswagen. The company has benefited from strong demand for its products in both domestic and international markets. Investors are optimistic about the company's long-term growth prospects, given the rising demand for automobiles in emerging markets.

Stratzy's MOST Analysis:

ENDURANCE has received an AA- rating from Stratzy's MOST framework, indicating medium fundamental risks. This rating combines assessments of Management, Outlook, Safety, and Trend. ENDURANCE's strong management team, positive outlook, stable financial position, and favorable industry trends have contributed to this rating. The AA- rating suggests that investors should be aware of potential risks but that the company's overall fundamentals are solid.

Company's Fundamentals:

Endurance Technologies (NSE: ENDURANCE) is a leading auto component manufacturer in India. Its key financial ratios provide insights into its valuation and profitability. Stock PE (Price-to-Earnings) of 43.13 indicates that investors are willing to pay 43.13x the company's annual earnings per share, reflecting a premium valuation. PB Ratio (Price-to-Book) of 5.7 suggests that the stock is trading at a multiple of 5.7x its book value per share, indicating that investors believe the company's assets are undervalued. Finally, the Dividend Yield of 0.38% represents a modest dividend income for shareholders, indicating that the company prioritizes capital growth over dividend payouts.

Fundamental and Technical information provided in this blog were last updated on 05 Jun, 2024

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