Endurance Technologies: Motilal Oswal Reiterates BUY Rating with INR 3,215 Price Target

Motilal Oswal has issued a research report on Endurance Technologies, reaffirming its 'BUY' rating and setting a price target of INR 3,215. The report indicates that the company's operational performance in the second quarter of fiscal year 2026 (2QFY26) was in line with expectations. A slight miss in Profit After Tax (PAT) was attributed to higher-than-anticipated depreciation expenses and an increased tax rate during the quarter.

Growth Outlook:

Motilal Oswal projects robust financial growth for Endurance Technologies over the medium term. They estimate a Compound Annual Growth Rate (CAGR) of approximately 17% for consolidated revenue, 19% for EBITDA, and 18% for PAT from fiscal year 2025 to fiscal year 2028. This positive forecast is supported by healthy new order wins secured by the company and its strategic focus on significantly expanding its presence in the four-wheeler (4W) market.

Key Opportunity:

A crucial growth catalyst identified is the potential mandate for Anti-lock Braking Systems (ABS) in all two-wheelers (2Ws), as indicated by a draft notification from the Ministry of Road Transport and Highways (MORTH). If implemented, this regulation would present a substantial new market for Endurance Technologies, a key player in supplying such automotive components.

Valuation and Recommendation:

The stock is currently trading at a valuation of 40 times projected earnings for FY26 and 33 times for FY27 (FY26E/FY27E consolidated EPS). Based on these factors, Motilal Oswal reiterates its 'BUY' recommendation with a price target of INR 3,215, derived from a multiple of 36 times the estimated consolidated EPS for September 2027 (Sep’27E).

Impact:

This research report is likely to influence investor sentiment positively for Endurance Technologies. The clear 'BUY' recommendation, specific price target, and detailed growth projections, coupled with the potential ABS opportunity, could attract investor interest and potentially lead to an increase in the stock price. The valuation, while currently high, is justified by the projected growth.

Impact Rating: 7/10

Difficult Terms:

• 2QFY26: The second quarter of the financial year 2026 (typically April 1, 2025, to March 31, 2026).
• PAT (Profit After Tax): The net profit remaining after all expenses and taxes have been deducted.
• Depreciation: The decrease in the value of an asset over time due to wear, tear, or obsolescence.
• Tax Rate: The percentage of profit paid as tax to the government.
• CAGR (Compound Annual Growth Rate): The average annual growth rate of an investment over a specified period, accounting for compounding.
• Revenue: The total income generated from the sale of goods or services.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance before accounting for financing costs, taxes, and non-cash expenses.
• FY25-28: Refers to the fiscal years from 2025 through 2028.
• 4Ws (Four-wheelers): Vehicles with four wheels, such as cars.
• ABS (Anti-lock Braking System): A safety system that prevents wheels from locking up during braking, maintaining steering control.
• 2Ws (Two-wheelers): Vehicles with two wheels, such as motorcycles and scooters.
• MORTH: Ministry of Road Transport and Highways, a government body in India.
• EPS (Earnings Per Share): The portion of a company's profit allocated to each outstanding share of common stock.