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ENDURANCE - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.8

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental Rating: 3.8

Stock Code ENDURANCE Market Cap 33,333 Cr. Current Price 2,368 ₹ High / Low 3,080 ₹
Stock P/E 45.9 Book Value 324 ₹ Dividend Yield 0.42 % ROCE 21.5 %
ROE 16.1 % Face Value 10.0 ₹ DMA 50 2,512 ₹ DMA 200 2,548 ₹
Chg in FII Hold -0.12 % Chg in DII Hold 0.15 % PAT Qtr 186 Cr. PAT Prev Qtr 188 Cr.
RSI 39.0 MACD -39.2 Volume 73,392 Avg Vol 1Wk 71,555
Low price 1,556 ₹ High price 3,080 ₹ PEG Ratio 2.47 Debt to equity 0.02
52w Index 53.3 % Qtr Profit Var 18.3 % EPS 49.6 ₹ Industry PE 25.0

📊 Core Financials

  • Revenue growth: Stable, PAT at 186 Cr. vs 188 Cr. previous quarter
  • Profit margins: EPS at 49.6 ₹, ROE 16.1%, ROCE 21.5% — solid efficiency
  • Debt ratios: Very low debt-to-equity at 0.02, nearly debt-free
  • Cash flows: Healthy profitability supports strong cash generation
  • Return metrics: ROE and ROCE above average, though not industry-leading

💹 Valuation Indicators

  • P/E Ratio: 45.9, significantly above industry PE of 25.0, reflects premium valuation
  • P/B Ratio: ~7.3 (2,368 ₹ / 324 ₹), relatively high
  • PEG Ratio: 2.47, suggests valuation stretched relative to growth
  • Intrinsic Value: Current price appears overvalued compared to industry norms

🏢 Business Model & Competitive Advantage

  • Operates in auto components sector, supplying suspension, transmission, and braking systems
  • Competitive advantage through diversified product portfolio and OEM relationships
  • Industry demand supported by automotive growth and export opportunities

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive near 2,200–2,300 ₹ range
  • Long-Term Holding: Cautious recommendation; strong fundamentals but valuation is stretched

✅ Positive

  • Strong ROCE (21.5%) and ROE (16.1%) indicate efficient capital use
  • Debt-to-equity ratio at 0.02 shows near debt-free status
  • EPS at 49.6 ₹ reflects consistent profitability

⚠️ Limitation

  • P/E ratio (45.9) well above industry average
  • P/B ratio at ~7.3 is relatively high
  • PEG ratio of 2.47 suggests valuation stretched compared to growth

📰 Company Negative News

  • PAT slightly declined from 188 Cr. to 186 Cr.
  • FII holding decreased (-0.12%)
  • Stock trading below 50 DMA (2,512 ₹) and 200 DMA (2,548 ₹), showing weak momentum

🌟 Company Positive News

  • DII holding increased (+0.15%)
  • Dividend yield at 0.42% provides shareholder returns
  • 52-week low at 1,556 ₹ shows strong recovery to current levels

🏭 Industry

  • Automobile components industry PE at 25.0, ENDURANCE trades at a premium
  • Sector benefits from rising automotive demand and export opportunities

🔎 Conclusion

  • ENDURANCE shows solid fundamentals with strong profitability and minimal debt
  • Valuation is stretched compared to industry peers, limiting near-term upside
  • Recommended for long-term holding only at lower entry levels (2,200–2,300 ₹) with cautious optimism

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