Endurance Technologies Ltd. share price target

26 June 2020 ENDUs 4QFY20 performance miss was majorly due to the COVID-19 led lockdown. Miss in EU revenues and higher other expenses in India led to miss at adj. ENDU continues to outperform the underlying 2W industry and this gap should widen further due to new customers and content increase. EU subsidiaries also continued to outperform the underlying EU PV industry. We have cut our FY21E EPS by 4%.to factor in the near-term weakness in the 2W industry. However, we have increased FY22E EPS by 8% to factor in the recovery and new order wins. Maintain with TP of ~INR1,065 (23x Jun22E EPS). S/A revenues declined ~14% YoY to ~INR11.3b (v/s est.

17 March 2020 ENDUs plants in Italy are primarily located in the Turin region, while Lombardy and Venice regions are facing shutdowns (quarantine). Even its collaborator, Adlers plant in Milan is operational. any business, though operating rates have reduced. Over the last 6-7 years, Italian plants have strategically shifted focus toward German customers, which is now reflected in Volkswagon (VW) group being its largest customer. 2W OEMs in the near term are focused on liquidating BS4 inventory, particularly the few larger players. has brought forward the sourcing of brakes from ENDU due to the disruption. For its India operations, ENDU sources certain components from China. However, it also has an alternate source for these components in India as well, thereby ensuring continuity of operations. ENDUs near-term operating performance is expected to be influenced by the longevity of disruption in Europe and the BS6 transition in India.

Endurance Technologies Ltd is one of India's leading automotive component manufacturers with operations in India and Europe. It mainly caters to twoand three-wheeler OEMs in India and supplies aluminium casting products to four-wheeler OEMs in Europe. The company operates 17 plants in India, 9...

8 February 2020 ENDUs 3QFY20 performance miss is a reflection of the weak volume environment for 2Ws. Thus, there was a 15% revenue miss in the India business, resulting in 10% consol. While near-term outlook for the 2W industry is weak, ENDU should outperform due to new customers and content increase. We have lowered our EPS for FY20/21E to factor in the near-term weakness in the 2W industry. However, we maintain would be transitory but scope for content increase is structural. revenue/EBITDA/PAT grew -9.5%/3%/12% to ~INR16.4b/INR2.6b/ INR1.24b. S/A revenues declined ~12.5% YoY to ~INR11.6b (v/s est.

understanding of ENDU's products (Refer PPT). We also visited ENDU's diecasting, transmission and suspension R&D; centers along with world class test tracks for which ENDU has invested Rs0.55b. We believe ENDU's core focus on R&D; with its ability to offer unique solutions among peers sets it apart in winning break through products from difficult accounts like Hyundai/ Kia group (Koreans auto ancillary are preferred suppliers), HMCL (Munjal Showa- Hero group company) and HMSI (Showa India Honda group company). With new products innovation (CBS/ABS, inverted front forks, CVTs and aluminum forging products), we believe ENDU would continue to...

Impressive Performance Maintain HOLD: During Q2FY20, Endurance Technologies Ltd (ETL's) sales

Endurance Technologies Ltd is one of India's leading automotive component manufacturers with operations in India and Europe. It mainly caters to twoand three-wheeler OEMs in India and supplies aluminium casting products to four-wheeler OEMs in Europe. The company operates 16 plants in India, 9...

Reversal of tyre venture decision alleviates investor concerns Quarterly results buck the trend Endurance's Q1 numbers came in above street expectations with margins zooming beyond expectations despite topline showing softness. On the topline front, the domestic revenues showed a 3.5% yoy and 1.5% qoq growth. This positive growth came in despite the underlying auto industry declining significantly. Due to a strong order book and constant business coming from existing clients, mainly the 2W companies this growth was possible. Domestic margins went up by 450 bps yoy and 250 bps qoq on Maharashtra Government tax incentives of 70 cr In Q1, tight control on...

expanded 260bp YoY (+340bp QoQ) to 15.5% (our est. 12.9%) led by incentives, decline in RM and better mix. Adj. PAT grew 35% YoY to INR1.1b. EU business revenues grew 12.5% YoY to INR5.6b (in-line), with CC revenue growing 10.9% YoY. EBITDA margin expanded 130bp YoY (+200bp QoQ) to 20.9%, driven by higher tooling revenues. Higher depreciation restricted PAT growth to 17% YoY at INR384m (our est. INR352m). Key highlights from earnings call: (a) In FY19, ENDU received new orders of INR10.3b in India and ~EUR60m in the EU business, taking the total Europe...

Endurance Technologies Ltd (ETL's) Q4FY19 results were mixed bag relative to our expectations to factor in slackness in Indian 2W industry and overall slowdown in European car market, we have reduced our sales estimates by 1.9%/2%.