ENDURANCE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 4.1

📊 Financials Overview:

• Revenue & Profit Growth: PAT increased from 166 Cr. to 188 Cr. (↑ 13.2%).
• Margins: ROCE at 21.5% and ROE at 16.1% show strong profitability.
• Debt Ratios: Debt-to-equity at 0.02 indicates negligible leverage.
• Cash Flows: Stable earnings with modest dividend yield of 0.39%.

💹 Valuation Indicators:

• P/E Ratio: 54.2 vs Industry PE of 30 → significantly overvalued.
• P/B Ratio: Current Price / Book Value ≈ 8.3, expensive compared to peers.
• PEG Ratio: 2.91 → valuation stretched relative to growth.
• Intrinsic Value: Fair value estimated near 2,200–2,350 ₹; current price above comfort zone.

🏭 Business Model & Competitive Advantage:

• Endurance operates in auto components, serving both domestic and export markets.
• Strong OEM partnerships and cost-efficient manufacturing provide resilience.
• Low debt ensures flexibility for expansion and R&D investments.

📈 Entry Zone & Long-Term Guidance:

• Entry Zone: Attractive accumulation range between 2,200–2,350 ₹.
• Long-Term Holding: Strong fundamentals support holding; valuation risk requires cautious entry.

Positive

• High ROCE and ROE reflect efficient capital use.
• Negligible debt enhances financial stability.
• Quarterly PAT growth demonstrates operational strength.

Limitation

• High P/E and PEG ratios indicate overvaluation.
• Dividend yield is low, limiting income appeal.
• Stock trades near resistance levels (DMA 50 at 2,717 ₹).

Company Negative News

• No major negative news reported; valuation premium remains the key concern.

Company Positive News

• Quarterly PAT growth of 13.2% shows strong performance.
• FII holdings increased by 0.30%, reflecting institutional confidence.

Industry

• Auto component industry PE at 30, lower than Endurance’s 54.2.
• Sector growth driven by EV adoption and global supply chain diversification.

Conclusion

⚖️ Endurance is financially strong with excellent return metrics and negligible debt. However, valuations are stretched compared to industry averages. Long-term investors may consider accumulating during dips near 2,200–2,350 ₹ for better margin of safety, while short-term traders should be cautious given RSI at 42.6 and negative MACD momentum.