Mehabe score: 3 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 6.
Description
Endurance Technologies is engaged in the business of manufacturing and selling of aluminium die casting (including alloy wheel), suspension, transmission and braking products with operations spread across India.
Main Points
Company history#
The company was started by Anurag Jain with the help of his uncle Rahul Bajaj (The chairman of Bajaj group of companies) in 1985. Initially the company did only Aluminum die casting work for Bajaj Auto and Bajaj auto was their sole client till 2004 and the company ventured into various segments only after 2004.Site:ENDURANCEMain Symbol:ENDURANCE
Stock trades at 1732.0, above its 50dma 1565.89. It also trades above its 200dma 1369.96. The stock remains bullish on techicals
The 52 week high is at 1715.55 and the 52week low is at 898.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– The company has delivered a poor sales growth of 4.60% over past five years.
-Debtor days have increased from 46.17 to 58.04 days.
Competition
– The industry trades at a mean P/E of 32.4x. Minda Industries trades at the industry’s max P/E of 98.66x. ENDURANCE trades at a P/E of 46.9x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 7.0. ENDURANCE has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 2.1%. The max 1- month return was given by Minda Industries: a return of 15.29 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2133.0 cr compared to Rs 1597.0 cr for period ended Mar 2020, a rise of 33.6%
Operating Profits reported at Rs 332.0 cr for period ended Mar 2021 vis-vis 238.0 for period ended Mar 2020 .
Operating Margins expanded 66.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 13.32 compared to Rs 13.51 for previous quarter ended Dec 2020 and Rs 7.59 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6547.0 cr for period ended Mar 2021 vis-vis sales of Rs 6915.0 cr for the period ended Mar 2020, a fall of 5.6%. The 3 year sales cagr stood at 1.0%.
Net Profit reported at Rs 520.0 cr for period ended Mar 2021 vis-vis sales of Rs 566.0 cr for the period ended Mar 2020, falling 8.8%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 91% on a 1 Year basis vis-vis a return of 8% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -6% vis-vis a compounded profit growth of 9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 8.34% vis-vis 9.85% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 1.49% vis-vis 1.64% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – The company has delivered a poor sales growth of 4.60% over past five years.
-Debtor days have increased from 46.17 to 58.04 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 1565.89 and is trading at 1732.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
