Endurance Applied sciences Ltd – Increasing Horizons
Included in 1985 and headquartered in Aurangabad, Endurance Applied sciences Ltd. is a number one automotive part provider, providing a various vary of technology-driven merchandise throughout its operations in India and Europe (Italy and Germany). The corporate serves key automotive verticals equivalent to die-casting, suspension, braking, transmission, embedded electronics and aluminium forging, adopted by a major presence in aftermarket enterprise. The corporate has additionally expanded into the electrical mobility sector via its wholly owned subsidiary, Maxwell Vitality Techniques Pvt. Ltd., specializing in superior Battery Administration Techniques (BMS) for electrical autos and power storage purposes. The corporate’s clientele includes of main manufacturers equivalent to Volkswagen, Stellantis, Bajaj Auto, HeroMotocorp, Ather, TVS, Valeo, Yazaki and so forth. As of 31 March 2025, it has 19 manufacturing vegetation in India and 14 in Europe.
Merchandise and Providers
The corporate supplies a variety of services as follows:
- Aluminium die casting – Built-in face cowl, swing arm, crank instances, alloy wheels, EV mission case and so forth.
- Suspension system – Shock absorbers, entrance forks, and so forth.
- Transmission – Clutch assemblies, driveshafts, and so forth.
- Braking system – Disc and drum brake assemblies, ABS modulators, and so forth.
- Aftermarkets – Substitute parts for suspension, transmission, braking techniques.
Subsidiaries: As of FY25, the corporate has 10 subsidiaries and no different affiliate corporations/joint ventures.
Funding Rationale
- Capability growth and new enterprise initiatives – The corporate is making a strategic foray into the fast-growing power storage section with the institution of a brand new lithium-ion battery pack manufacturing facility in Pune, with manufacturing anticipated to start by January 2026. This initiative is geared toward tapping into alternatives throughout the electrical mobility ecosystem – together with 2W, 3W, and 4W segments – in addition to non-automotive sectors equivalent to telecom, inverters, and stationary power storage techniques. It has already secured order price Rs.3 billion from a number one 2W OEM. The corporate is aiming to leverage its in-house battery know-how alongside the BMS experience of its subsidiary, Maxwell, to ship built-in, high-performance options. Moreover, it’s establishing a 4W casting plant at AURIC Shendra, with operations set to start in H2FY26. The plant has already constructed a strong order pipeline, with an annual order e book of Rs.2.75 billion from main international OEMs. These merchandise are anticipated to yield excessive margins. A 2W alloy wheel manufacturing plant can be being developed at AURIC Bidkin with an annual capability of three.6 million wheels, and manufacturing is anticipated to begin in H2FY26.
- Strategic acquisitions and partnerships – The corporate has strengthened its European footprint via the acquisition of a 60% stake in Germany-based Stöferle GmbH and Stöferle Automotive GmbH. These entities convey superior capabilities in automated machining of advanced aluminium die-cast parts and in-house CNC machine manufacturing, enabling sturdy vertical integration and operational effectivity. The acquisition is anticipated to be earnings accretive, supported by the entities’ constant top-line and bottom-line progress. The corporate has additionally entered a strategic technical partnership with a number one Korean suspension producer, which has delivered over 10 crore shock absorbers globally. This collaboration marks the corporate’s entry into the underpenetrated four-wheeler suspension section in India, an area with restricted competitors however rising OEM curiosity. To seize this chance, the corporate is establishing a devoted greenfield manufacturing facility, with three key applications below lively improvement and estimated timelines of 8–12 months. This initiative is additional supported by a brand new suspension R&D heart in Waluj, centered on 2W, 3W, 4W, and non-automotive purposes, positioning the corporate for long-term progress in a high-potential vertical.
- Q4FY25 – Through the quarter, the corporate generated income of Rs.2,998 crore, a rise of 11% in comparison with the Rs.2,711 crore of Q4FY24. Working revenue elevated from Rs.416 crore of Q4FY24 to Rs.457 crore of Q4FY25, a progress of 10%. The corporate reported web revenue of Rs.245 crore, a rise by 17% YoY in comparison with Rs.210 crore of the corresponding interval of the earlier 12 months.
- FY25 – Through the FY, the corporate generated income of Rs.11,678 crore, a rise of 13% in comparison with the FY24 income. Working revenue is at Rs.1,668 crore, up by 18% YoY. The corporate reported web revenue of Rs.836 crore, a rise of 23% YoY.
- Monetary Efficiency – The three-year income and web revenue CAGR stands at 15% and 19% between FY23 – 25. Common 3-year ROE and ROCE is round 13% and 16% for FY23-25 interval. Debt to fairness ratio is at 0.17.
Trade
India’s auto part trade is witnessing sturdy progress, pushed by a rising working inhabitants, increasing center class, and shifting international provide chains. With efforts to scale back import dependence and enhance native manufacturing, home gamers are set to learn. India is turning into a world sourcing hub, aided by its proximity to key markets like ASEAN, Europe, Japan, and Korea. Rising incomes, infrastructure spending, and authorities incentives, together with help for EVs, are accelerating trade growth. As the worldwide shift in the direction of electrical and hybrid autos good points momentum, new alternatives are rising for Indian part producers. India, the world’s third-largest automotive market, additionally leads in 3W manufacturing and ranks among the many prime two for 2W.
Development Drivers
- 100% FDI is allowed below the automated route for auto parts sector.
- The discount within the tax burden within the 2025-26 Union Funds is anticipated to spice up spending among the many increasing center class inhabitants.
- Allocation of ~Rs.7,400 crore (74% enhance YoY) for the EV sector within the Union Funds 2025-26.
Peer Evaluation
Opponents: Bharat Forge Ltd, Jamna Auto Industries Ltd, and so forth.
In comparison with its friends, Endurance Applied sciences demonstrates constant gross sales progress, reflecting stronger market penetration, whereas delivering secure returns on invested capital – highlighting its strong operational effectivity.
Outlook
The corporate witnessed sturdy order momentum in FY25, securing Rs.11.99 billion in orders for its India enterprise, with 37% linked to the EV section and 34% to four-wheelers. Key prospects embody Honda, Royal Enfield, Hero MotoCorp, Ather Vitality, Tata Motors, Valeo, and Yazaki. It’s actively pursuing RFQs price Rs.34 billion throughout varied product classes, together with from electrical 4W OEMs. The corporate is focusing on accelerated progress within the 4W section via new product launches, portfolio diversification, and strategic partnerships. Within the non-automotive section, a photo voltaic damper order from a serious Spanish agency marks a key win, with industrial manufacturing scheduled to start at one in all its vegetation in Q2FY26.
Valuation
We imagine Endurance Applied sciences’ sturdy order e book, diversified product portfolio, and strategic concentrate on EV parts place it effectively for sustainable long-term progress and worth creation. We suggest a BUY score within the inventory with the goal value (TP) of Rs.3,066, 42x FY27E EPS.
SWOT Evaluation
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