ENDURANCE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | ENDURANCE | Market Cap | 38,457 Cr. | Current Price | 2,734 ₹ | High / Low | 3,080 ₹ |
| Stock P/E | 51.4 | Book Value | 351 ₹ | Dividend Yield | 0.38 % | ROCE | 21.7 % |
| ROE | 16.1 % | Face Value | 10.0 ₹ | DMA 50 | 2,453 ₹ | DMA 200 | 2,499 ₹ |
| Chg in FII Hold | -0.58 % | Chg in DII Hold | 0.57 % | PAT Qtr | 210 Cr. | PAT Prev Qtr | 186 Cr. |
| RSI | 62.7 | MACD | 56.6 | Volume | 96,486 | Avg Vol 1Wk | 1,32,488 |
| Low price | 2,143 ₹ | High price | 3,080 ₹ | PEG Ratio | 2.23 | Debt to equity | 0.01 |
| 52w Index | 63.1 % | Qtr Profit Var | 12.2 % | EPS | 52.2 ₹ | Industry PE | 27.0 |
📊 Financials: ENDURANCE shows strong fundamentals. Quarterly PAT rose to 210 Cr from 186 Cr, reflecting steady earnings growth. ROCE at 21.7% and ROE at 16.1% highlight good efficiency and profitability. EPS stands at 52.2 ₹, supporting healthy earnings. Debt-to-equity is extremely low at 0.01, indicating a virtually debt-free balance sheet and strong cash flow position.
💰 Valuation: The stock trades at a P/E of 51.4, significantly higher than the industry average of 27.0, suggesting premium valuation. Book value is 351 ₹, with current price at 2,734 ₹, implying a P/B ratio of ~7.8. PEG ratio of 2.23 indicates valuation is stretched relative to growth. Intrinsic value appears lower than current levels, suggesting the stock is somewhat overvalued.
🚗 Business Model & Health: ENDURANCE operates in auto components, with strong presence in suspension, transmission, and braking systems. Competitive advantage lies in diversified product offerings, OEM partnerships, and global reach. Overall health is strong, supported by profitability, innovation, and minimal debt.
📈 Entry Zone: RSI at 62.7 indicates mildly overbought levels. Support is near 2,450 ₹, resistance at 3,080 ₹. Entry around 2,450–2,600 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals, though investors should be cautious of stretched valuations.
Positive
- 🚗 [Market Leadership](ca://s?q=ENDURANCE_market_leadership): Strong presence in auto components with OEM partnerships.
- 📈 [Profitability](ca://s?q=ENDURANCE_profitability): Healthy ROCE (21.7%) and ROE (16.1%).
- 💸 [Low Debt](ca://s?q=ENDURANCE_debt_levels): Debt-to-equity ratio of 0.01 ensures financial stability.
Limitation
- 📉 [Valuation](ca://s?q=ENDURANCE_valuation): P/E and P/B ratios are higher than peers.
- ⚠️ [Growth Valuation](ca://s?q=ENDURANCE_growth_valuation): PEG ratio of 2.23 suggests stretched valuation relative to growth.
- 📊 [FII Outflow](ca://s?q=ENDURANCE_FII_outflow): Foreign investors reduced holdings by -0.58%.
Company Negative News
- 📉 [FII Reduction](ca://s?q=ENDURANCE_FII_reduction): Decline in foreign institutional holdings.
Company Positive News
- 📈 [DII Support](ca://s?q=ENDURANCE_DII_support): Domestic institutions increased holdings by 0.57%.
- 💹 [Profit Growth](ca://s?q=ENDURANCE_profit_growth): PAT rose to 210 Cr from 186 Cr.
Industry
- 🚘 [Automobile Growth](ca://s?q=Indian_automobile_growth): Sector expanding with rising demand for auto components.
- 📊 [Industry PE](ca://s?q=Automobile_industry_PE): Sector average P/E is 27.0, lower than ENDURANCE’s valuation.
Conclusion
✅ ENDURANCE demonstrates strong fundamentals, profitability, and minimal debt, making it a fundamentally sound investment. While valuations are stretched, growth prospects and industry demand justify partial premium. Entry around 2,450–2,600 ₹ is favorable, and long-term holding is recommended given the company’s resilience and sector outlook.