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Buy Endurance Technologies, target price Rs 1935: LKP Securities

LKP Securities has buy call on with a target price of Rs 1935. The current market price of Endurance Technologies is Rs 1723.25.

Time period given by analyst is one year when Endurance Technologies Ltd. price can reach defined target.

Endurance Technologies Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 24156.03 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1706.36 Crore, down -20.26 % from last quarter Total Income of Rs 2139.77 Crore and up 177.92 % from last year same quarter Total Income of Rs 613.97 Crore. Company reported net profit after tax of Rs 96.56 Crore in latest quarter.


Investment Rationale
In domestic markets the story will be driven by increasing business with existing clients and new business wins particularly at the higher end of the spectrum. Increasing capacities for client specific supplies at low capex, and entry into new products shall boost the numbers. Increasing orders from existing clients, new businesses in both India and Europe, higher content per vehicle is increasing the market share consistently and will continue to rise hereon. Profitability lift up, improvement in return ratios will be the result of higher product mix and increased electrification & hybridization in Europe.Endurance derives about 66% of its consol topline from 2Ws and considering the rising importance of social distancing and personal mobility in domestic markets, the brokerage believes 2W industry to be preferred medium of transport and therefore Endurance is an attractive Investment Opportunity. It maintains BUY rating on the stock with slightly increased target price of Rs 1,935 valued at 30x FY23E earnings.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of June 30, 2021, while FIIs held 8.34 per cent, DIIs 15 per cent and public and others 1.67 per cent.

(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.

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