E-PaperEndurance Tech soars 20% to hit new high, up nearly 40% in just 8 days; what’s behind the rally?
Endurance Tech's stock surged 20% to a new high of ₹3,059.05, marking 8 consecutive sessions of gains driven by growth prospects. It has gained 39% over 8 days, posting positive returns in June. The stock doubled investor wealth, rising over 102% from its 52-week low.
Endurance Technologies stock surged 20 percent to its new record high of ₹3,059.05 on Friday, June 14, marking its eighth consecutive session of gains driven by optimistic growth prospects. Over these eight days, the stock has risen approximately 39 percent. It posted negative returns in only one out of ten sessions in June. Overall, in the current month, it has gained nearly 23 percent.
Furthermore, following today's surge, the stock has doubled investor wealth, rising more than 102 percent, from its 52-week low of ₹1,511.60 recorded on June 15, 2023. It has posted a gain of over 58 percent year-to-date in 2024, delivering positive returns in four out of the six months so far. Notably, it advanced nearly 23 percent in June, marking the third consecutive month of gains, after returns of 12 percent in May and 8.3 percent in April. However, the stock saw declines of 1.6 percent in March and 11.8 percent in February, following a 9 percent increase in January 2024.
Read here: Indian 10-year bond yields drop below 7% amid cooling inflation, rate cut hopes
Endurance Technologies' stock has surged 51% in the last month, driven by robust earnings. According to the exchange filing, its consolidated profit after taxes (PAT) for the quarter ending March jumped 54 percent year-on-year (YoY) to ₹210.2 crore as against ₹136.5 crore in the year-ago period. Meanwhile, its consolidated total income rose 20 percent YoY to ₹2,711.3 crore versus ₹2,255.2 crore in the previous year, with EBITDA climbing 36.4 percent to ₹389.4 crore. The company's margin also expanded to 14.5 percent, up 173 basis points in the March 2024 quarter.
Additionally, the firm also declared a dividend of ₹8.50 per equity share (85 percent payout) for FY23-24. It also secured significant orders of ₹1,199 crore in India and Euro 31 million in Europe for FY24. The management expects the order book to grow further, with ₹1,840 crore worth of Requests for Quotations (RFQs) under discussion. Projections for FY25 foresee an order book of ₹1,580 crore, increasing to ₹2,380 crore in FY26 and ₹2,690 crore in FY27, Endurance said in its presentation.
For the full financial year FY24, the firm disclosed a consolidated PAT of ₹680.5 crore, marking a robust 41.9 percent increase over the previous year. Consolidated total income, including other income, also climbed from ₹8,849.5 crore to ₹10,326.5 crore, reflecting a solid 16.7 percent year-on-year growth. The consolidated EBITDA margin for FY2024 improved to 13.7 percent from 12.2 percent in the previous year, driven by margin expansion across both its Europe and standalone businesses.
“We have posted our best-ever quarter and annual results in terms of standalone and consolidated topline and bottom line. New vehicle sales in the Indian 2W market and in the European car market have seen YOY improvement, but are still below 90% of pre-pandemic levels. Our record results have come on the back of our customer-centric approach, as we continue not only to deliver quality products but also expand our product basket with an eye on the needs of OEM customers and vehicle owners," said Anurang Jain, Managing Director of the company.
Read here: Up 47% in 2.5 months; Bikaji Foods is MarketsMojo's pick of the month for June
Brokerage Motilal Oswal has maintained its ‘buy’ recommendation on the stock, citing the firm as the prime proxy play for the Indian 2W industry. The brokerage noted potential content expansion driven by technological advancements and new products. The company aimed to increase 4W revenue contribution to 45 percent by FY30 from the previous 26 percent, which was expected to be a key growth driver in subsequent years. The stock traded at 33x/27x FY25E/FY26E consolidated EPS, it added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
- Top Gainers
- Top Losers
- 52 Week High
