Endurance Technologies Ltd. share price target

Endurances (ETL) Q2 consolidated EBITDA was in line with estimates. India revenue grew 10% YoY despite Bajaj Auto (~50% of ETLs India sales) posting muted growth of 2% in Q2.

We hosted the top management of Endurance Technologies (ETL) for investor meetings in the US and UK. While we've documented our positive view in several notes in the last year (starting with our initiation )

We met with Mr Anurang Jain (MD) and senior management of Endurance Technologies (ENDU) to discuss (i) strategic initiatives undertaken in its India business, (ii) evolving opportunities in India and EU (driven by changes in customer preference and government regulations) and (iii) strategic objectives. Our confidence in ENDU's growth outlook has strengthened further post this meeting, given that the company appears well placed to benefit from a) deeper penetration within the existing customer base and b) scooterization...

Endurance Technologies is an Aurangabad based Auto Ancillary Company. It has 18 manufacturing plants in India and 8 in Europe. The companys domestic business is diversified, new clients have been added and diversification into newer products continues. Hence, the dependence on the legacy casting business has come down to 44% from more th..

We believe all the positives are priced in. Hence, maintain NEUTRAL with a revised TP of Rs 918 (23x on consol Jun-19E EPS). Endurance Technologies (ENDU) consol 1QFY18 results beat estimates on strong revenue traction (+8% YoY) and margin expansion (+83bps YoY). Strong 2W demand, regulatory changes, premiumisation trend and rising revenues from Hero and HMSI will help proprietary product revenues to post 20%+ CAGR over FY17-20E. ENDUs focus on reducing dependence on Bajaj is progressing well, with the latters contribution to sales coming down to 33% in 1QFY18 (vs 37% in FY17).

Endurance Technologies' (ETL) annual report suggests it turned a tough FY17 (for 2W industry; more so for Bajaj Auto) to good account by augmenting its product portfolio (ABS tie-up being key), making inroads into new customers (Hero/Honda), setting up plants that will contribute meaningfully to g..

Huge ABS/CBS opportunity: From April 2018, there will be compulsory implementation of Combined Brake Systems (CBS) for 2Ws <125cc, and Antilock Brake Systems (ABS) for 2Ws >125cc.

Endurance Technologies Ltd (ENDU) is one of the largest 2W & 3W automotive component manufacturers in India (70% of overall revenue). Its India business is focused on aluminium die castings & proprietary products (suspension, transmission and braking systems). It also...

Revenue rose by 3.47% to Rs. 1366.12 Cr in Q4FY17 when compared to the previous quarter.

Endurance Technologies' (ETL) Q4 results were mixed as strong Europe margin (18.2%) offset subdued India margin (10.4%). India margin was impacted by plant consolidation and operating deleverage (H2FY17 volumes were lower for most OEMs vs. initial production plan).