ENDURANCE - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: ENDURANCE Technologies Ltd.

Investment Rating: 3.8

📈 Long-Term Investment Outlook

Based on the data provided, this stock presents a mixed profile for long-term investing

Positives

Consistent Profit Growth: PAT increased from ₹184 Cr. to ₹236 Cr., indicating strong operational performance.

ROE of 14.6% and ROCE of 17.3%: These metrics suggest the company is generating decent returns on equity and capital employed.

Low Debt-to-Equity Ratio (0.17): Reflects financial stability and low leverage.

EPS of ₹59.5: Indicates solid earnings per share.

Strong Institutional Interest: FII holdings increased by 1.17%, showing confidence from foreign investors.

Concerns

High Valuation: Stock P/E of 46.1 vs. industry average of 31.2; PEG ratio of 2.47 implies overvaluation relative to growth.

Low Dividend Yield (0.39%): Not ideal for income-focused investors.

Decline in DII Holding (-1.35%): Could reflect some institutional caution.

RSI of 44.9: Neutral, suggesting limited momentum.

MACD of 4.81: Indicates some bullishness, but not strongly so.

🎯 Ideal Entry Price Zone

Considering technical trends and valuations

Target Entry Price Zone: Between ₹2,280 and ₹2,400

Closer to the DMA 200 of ₹2,279, which often acts as a strong support zone.

Offers better value relative to the current overvalued price of ₹2,561.

📌 Exit Strategy & Holding Period (For Existing Holders)

If you already hold this stock

Holding Period: Consider a medium- to long-term horizon (3–5 years) if you believe in the sector's growth.

Exit Strategy

Partial Exit if price exceeds ₹3,000 and valuation remains stretched (PEG > 2, P/E well above industry).

Trailing Stop-Loss below ₹2,250 to protect profits.

Reassess if ROE/ROCE dip or profit growth slows significantly.

🧠 Final Take

ENDURANCE shows signs of robust operational health and growth potential, but the current valuation demands caution. A dip into the ₹2,300 zone could offer more comfort for long-term buyers. For existing holders, staying in the game could be worthwhile—just keep an eye on earnings momentum and valuation metrics.

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