Operating performance hit by high operating expenses

Company
11 Mar 2024
5 Min read 
  • Endurance Technologies reported weak performance in 3QFY24 due to higher operating expenses.
  •  The company aims to increase its 4W revenue contribution from 26% to 45% by FY30.
  •  Expectations of a recovery in underlying industries and a revival in 2W demand are positive factors for Endurance Technologies.
  •  FY24/FY25 EPS estimates have been reduced by 3%/2% to account for lower EBITDA margins.
  •  Retain BUY rating with a target price of INR2,275 (+15%).
  •  Won new orders worth INR1.6b/EUR9m in India/EU during 3QFY24.
  •  India business revenue grew 25% YoY, while EU business revenue grew 5% YoY.
  •  Management targets to increase 4W revenue contribution through increased penetration in Al castings/forgings, suspension, and brake assembly.
  •  The stock trades at 42.3x/32.8x at FY24E/FY25E consolidated EPS.
Login / Open Demat Account to read the report

Never Miss Out on Hot Market Updates

Get exclusive market news delivered to your inbox - on priority