Brokerage firm Axis Direct has assigned a 'BUY' rating to Endurance Technologies, projecting a 10% upside from its recent market price. The recommendation is driven by significant capacity expansion in braking and suspension systems, as well as robust growth in the company's electric vehicle (EV) component portfolio.
Axis Direct Sets Rs 2,500 Target for Endurance Technologies
Axis Direct projects an upside of 10% from the current market price of Rs 2,273.
The brokerage estimates a net profit CAGR of 33% between FY26 and FY28.
Reader Takeaway: Endurance Technologies shows strong EV growth and expansion, but faces risks from facility ramp-up execution and macro-economic shifts.
What just happened
Brokerage firm Axis Direct has issued a 'BUY' rating for auto-component major Endurance Technologies. The firm has set a price target of Rs 2,500, citing the company's aggressive expansion in both traditional and electric vehicle (EV) segments. The report highlights robust order wins in India and Europe alongside the commencement of production at the new AURIC Shendra facility.
Why this matters
The company is aggressively scaling its footprint in high-margin areas such as ABS systems, disc brakes, and inverted front forks. The successful commercial launch of the AURIC Shendra facility is expected to unlock a business potential of Rs 513 crore, supported by new orders from major OEMs like Hyundai, Kia, Tata Motors, and Mahindra.
EV and Proprietary Growth
Endurance Technologies is seeing significant traction in its EV portfolio, which includes battery packs, motor controllers, and BMS. Its subsidiary, Maxwell, recorded an 85% year-on-year revenue growth in Q1FY27. The company has secured EV-related orders totaling Rs 1,806 crore per annum, positioning it well for the shift toward electric mobility.
Risks to watch
Growth remains dependent on the timely execution of its large order book and the operational success of newly commissioned facilities. Investors should also monitor external pressures, including the volatility of aluminium prices and the overall demand cycle within the automotive sector, which could impact margins.
Context Metrics (Estimates)
- FY27E Net Sales: Rs 18,032 crore
- FY27E EBITDA: Rs 2,406 crore
- FY27E Net Profit: Rs 1,145 crore
- FY27E EPS: Rs 81.4
What to track next
Shareholders should closely watch capacity utilization rates across new facilities and quarterly margin trends, as the brokerage expects a recovery in profitability starting from Q2FY27.