ENDURANCE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | ENDURANCE | Market Cap | 32,783 Cr. | Current Price | 2,331 ₹ | High / Low | 3,080 ₹ |
| Stock P/E | 45.2 | Book Value | 324 ₹ | Dividend Yield | 0.43 % | ROCE | 21.5 % |
| ROE | 16.1 % | Face Value | 10.0 ₹ | DMA 50 | 2,395 ₹ | DMA 200 | 2,496 ₹ |
| Chg in FII Hold | -0.58 % | Chg in DII Hold | 0.57 % | PAT Qtr | 186 Cr. | PAT Prev Qtr | 188 Cr. |
| RSI | 46.5 | MACD | -7.81 | Volume | 81,749 | Avg Vol 1Wk | 74,926 |
| Low price | 1,805 ₹ | High price | 3,080 ₹ | PEG Ratio | 2.43 | Debt to equity | 0.02 |
| 52w Index | 41.2 % | Qtr Profit Var | 18.3 % | EPS | 49.6 ₹ | Industry PE | 27.3 |
Financials & Valuation:
ENDURANCE shows decent fundamentals with ROCE (21.5%) and ROE (16.1%) reflecting solid efficiency. EPS of 49.6 ₹ supports profitability, though quarterly PAT (186 Cr.) was slightly lower than the previous quarter (188 Cr.), indicating flat earnings. Debt-to-equity is very low at 0.02, ensuring financial stability.
Valuation Indicators:
P/E ratio of 45.2 is significantly higher than the industry average (27.3), suggesting overvaluation. Book Value of 324 ₹ compared to current price of 2,331 ₹ shows premium pricing. PEG ratio of 2.43 indicates stretched valuation relative to growth. Dividend yield of 0.43% provides limited income support.
Business Model & Health:
ENDURANCE, a leading auto component manufacturer, benefits from strong demand in the automotive sector. Consistent profitability, low leverage, and rising DII holdings (+0.57%) reinforce overall health, though FII holdings declined (-0.58%).
Entry Zone & Holding Guidance:
Technically, support lies around 2,250–2,300 ₹, with resistance near 2,450–2,500 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is recommended given strong fundamentals, though valuation premium should be monitored.
Positive
- Strong ROCE (21.5%) and ROE (16.1%).
- EPS of 49.6 ₹ supports profitability.
- Very low debt-to-equity (0.02).
- DII holdings increased (+0.57%), showing domestic confidence.
Limitation
- High P/E (45.2) vs industry average (27.3).
- PEG ratio (2.43) indicates stretched valuation.
- Flat quarterly PAT (186 Cr. vs 188 Cr.).
- MACD (-7.81) indicates weak momentum.
Company Negative News
- Decline in FII holdings (-0.58%).
- Valuation premium compared to peers.
- Weak technical momentum indicators.
Company Positive News
- DII holdings increased, reflecting domestic institutional support.
- EPS remains strong at 49.6 ₹.
- Stable profitability despite industry volatility.
Industry
- Auto component sector benefits from rising demand in vehicles and exports.
- Industry PE (27.3) is lower than ENDURANCE’s, highlighting overvaluation.
- Long-term growth supported by automotive sector expansion.
Conclusion
ENDURANCE is fundamentally strong with solid profitability, low debt, and industry demand tailwinds. Entry near 2,250–2,300 ₹ offers a favorable setup. Long-term investors can hold with confidence, but should monitor valuation premium and weak technical momentum.
Would you like me to extend this into a peer benchmarking overlay comparing ENDURANCE against Motherson Sumi, Bosch, and Bharat Forge to highlight relative positioning in the auto component sector?