Endurance Technologies Ltd. share price target

Endurance Technologies (ENDU) consol 4QFY17 results were a mixed bag. Top line and PAT numbers beat estimates, while margins at 12.8% came in slightly below expectations. Strong 2W demand, regulatory changes, premiumisation trend and rising revenues from Hero and HMSI (both currently contribute only 11% to revenues) will help proprietary product revenues to post 20% CAGR over FY17-20E.

Endurance Technologies (ENDU) is a large and diversified player in the auto component space, with a strong presence in India (~70% of consolidated FY16 revenue).

Endurance Technologies' (ETL) Q3 results reminded us of all the reasons why we should like the company. India revenue fell by only 1% YoY despite its largest customer (Bajaj Auto at >50% of India sales) seeing a production decline of 13% during the quarter. The European business continues its stro..

We forecast FY16-19 earnings CAGR of 19%, with RoCEsat a healthy 22%. At CMP of 573, the stock trades at FY17/18/19 PE of 23.8x/19.7x/16.5x and EV/EBITDA of 11x/9.3x/7.9x. Our TP of Rs 700 (22% upside)values the business at 11x FY18E EBITDA (avgof most leading auto comps). Initiate with BUY

Endurance Technologies Limited (ETL) is the largest two wheeler and three wheeler automotive component manufacturer in India. Endurance is an Aurangabad based Auto Ancillary company with presence in India and Europe. The company was officially incorporated as Anurang Engineering company Private ltd by Mr. Anurang Jain in 1985 and was supplying aluminum die casts to Bajaj Auto in its initial years. Later, company started suspension products in 1996, transmission products in 1998 and brake systems in 2004. Starting from one manufacturing facility in 1985, the company currently operates 25 manufacturing facilities in India and Europe, of which 18 are in India, 5 in Italy and 2 in Germany. It manufacturers aluminium casting (63% of revenue), suspension (23%), transmission (5%), brake system...

dominating position in the 2W casting segment with a 33% market share and holds 14%/22% share in 2W braking & transmission/suspension segments. It generates 70% revenues from India (mainly 2Ws) and 30% through its European subsidiaries (PVs). We recommendsubscribingtotheissuedespiteloftyvaluations,aswelikeitsbusinessmodel coupled with the scarcity premium for quality companies to play the segmental opportunities it offers. We see strong structural growth potential led by high exposure to segments that are primed to benefit from changing consumer preferences and regulatory changesleadingtohighercontentpervehicleandrecoveryin2Windustrysales.Asperour...

Endurance Technologies td (ETL) is the largest two-wheeler and three-wheeler automotive component manufacturer in India. Issue Open: Oct 05 ? Oct 07 2016, Price Band: Rs. 467 ? 472

Endurance Technologies (ETL), incorporated in 1999, is an auto ancillary company with a presence in aluminium casting & machining, suspension, transmission & braking systems. ETL is the No. 1 aluminium die-casting company in India. The company has a strong presence in India (accounting for 67% of revenue) & Europe (31% of revenue) with 25 facilities in eight locations across India & Europe. ETL has diversified its segment (caters to 2W, 3-W & 4-W space) and has a long clientele list that includes names like Bajaj Auto, PCA Italy Spa, Royal Enfield, Suzuki, Yamaha, Piaggio, Daimler, Jeep, Tata Motors, Chrysler, etc. ETL has a strategy for the next phase of...

Incorporated in year 2000, Endurance Technologies Ltd is in the business of manufacturing two-wheeler and three-wheeler automotive component. It also manufactures specified components for four-wheeler passenger vehicles, light commercial vehicles and heavy commercial vehicles. The company's development process includes design, development, validation, testing, manufacturing, delivery and aftermarket sale service for a wide range of technology-intensive auto component products. It has 25 plants across India, Italy and Germany. Company has 18 manufacturing plants in India, located in the major automotive manufacturing belts of the country, comprising 8 in Aurangabad (Maharashtra), 5 in Pune...