ENDURANCE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Financial Strength & Profitability

Revenue & Profit Growth: Stable, but recent quarterly PAT dipped from ₹187 Cr to ₹166 Cr. EPS of ₹48.5 is solid.

Margins: ROCE at 21.5% and ROE at 16.1% indicate efficient capital use and strong profitability.

Debt Profile: Debt-to-equity of 0.01 — virtually debt-free, which is a major plus.

Cash Flow: Consistently positive, supporting reinvestment and resilience.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 58.7 Nearly double industry average (29.1) — expensive

P/B Ratio ~9.4 Premium valuation

PEG Ratio 3.16 Indicates overvaluation relative to growth

Intrinsic Value ~₹2,670 Slightly below CMP — modest downside

The stock is priced for perfection. While fundamentals are strong, valuation is stretched.

🏭 Business Model & Competitive Edge

Sector: Auto ancillaries — cyclical but essential.

Strengths

Diversified product portfolio across suspension, braking, and transmission systems.

Expanding EV component capabilities.

Strong European footprint via acquisitions.

Institutional Sentiment: FII holdings increased (+1.17%), though DII reduced (-1.35%).

📉 Technicals & Entry Zone

Current Price: ₹2,900

DMA 50: ₹2,758 | DMA 200: ₹2,431 — trading above both, bullish trend

RSI: 55.8 — neutral zone

MACD: Positive — momentum intact

📌 Suggested Entry Zone: ₹2,600–₹2,750

A pullback near the 50 DMA would offer a more attractive entry.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, low debt, and EV exposure make it a durable long-term play.

Wait if not invested: Valuation is rich. Better to enter on dips or post-earnings correction.

Let me know if you'd like a peer comparison or a forecast model built around its EV strategy.

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