⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ENDURANCE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ENDURANCE | Market Cap | 34,239 Cr. | Current Price | 2,435 ₹ | High / Low | 3,080 ₹ |
| Stock P/E | 49.1 | Book Value | 324 ₹ | Dividend Yield | 0.41 % | ROCE | 21.5 % |
| ROE | 16.1 % | Face Value | 10.0 ₹ | DMA 50 | 2,568 ₹ | DMA 200 | 2,567 ₹ |
| Chg in FII Hold | -0.12 % | Chg in DII Hold | 0.15 % | PAT Qtr | 188 Cr. | PAT Prev Qtr | 166 Cr. |
| RSI | 42.4 | MACD | -58.8 | Volume | 18,965 | Avg Vol 1Wk | 50,272 |
| Low price | 1,556 ₹ | High price | 3,080 ₹ | PEG Ratio | 2.64 | Debt to equity | 0.02 |
| 52w Index | 57.7 % | Qtr Profit Var | 1.49 % | EPS | 48.6 ₹ | Industry PE | 28.0 |
📊 Core Financials
- Revenue growth: Stable, PAT at 188 Cr vs 166 Cr in previous quarter, showing slight improvement.
- Profit margins: Healthy, EPS at 48.6 ₹ indicates strong earnings power.
- Debt ratios: Excellent, debt-to-equity at 0.02 shows negligible leverage.
- Cash flows: Supported by consistent profitability and low debt burden.
- Return metrics: ROCE 21.5 %, ROE 16.1 % — solid efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 49.1, significantly above industry average (28.0), suggests premium valuation.
- P/B ratio: Current Price / Book Value ≈ 7.5, expensive relative to assets.
- PEG ratio: 2.64, indicates valuation stretched relative to growth.
- Intrinsic value: Valuation appears rich, supported by strong fundamentals but not cheap.
🏢 Business Model & Competitive Advantage
- Operates in auto components manufacturing, supplying suspension, transmission, and braking systems.
- Strong presence in two-wheeler and four-wheeler OEM supply chains.
- Competitive advantage through diversified product portfolio and long-term OEM relationships.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 2,200–2,300 ₹ levels, closer to DMA 200 support.
- Long-term holding: Favorable due to strong fundamentals and industry positioning, though premium valuation requires cautious entry.
Positive
- Strong ROCE (21.5 %) and ROE (16.1 %).
- Negligible debt-to-equity ratio (0.02).
- Consistent profitability with EPS at 48.6 ₹.
- DII holdings increased (+0.15 %).
Limitation
- P/E ratio (49.1) significantly above industry average (28.0).
- P/B ratio at 7.5 indicates expensive valuation.
- PEG ratio at 2.64 shows stretched valuation compared to growth.
Company Negative News
- FII holdings decreased (-0.12 %).
- Technical indicators weak: RSI at 42.4, MACD negative.
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
Company Positive News
- Quarterly PAT improved (188 Cr vs 166 Cr).
- Strong fundamentals with high ROE and ROCE.
- Low debt ensures financial stability.
Industry
- Auto components industry benefiting from rising demand in two-wheeler and four-wheeler segments.
- Industry PE at 28.0, lower than ENDURANCE’s P/E, highlighting premium valuation.
Conclusion
- ENDURANCE demonstrates strong fundamentals with consistent profitability and negligible debt.
- Valuation is premium compared to industry peers, limiting upside potential.
- Entry advisable near support levels; long-term holding recommended for investors seeking exposure to auto component growth, with caution on valuation.
I can also prepare a comparative HTML snapshot against peers like Motherson Sumi and Bosch to highlight ENDURANCE’s relative valuation and strengths.