The shares of the leading auto components manufacturer gained up to 1 percent after the company’s subsidiary has signed a Share Purchase Agreement worth € 37.74 million.
With a market capitalization of Rs 32,161.86 crore, the shares of Endurance Technologies Ltd were trading at Rs 2,286.45 per share, decreasing around 0.14 percent as compared to the previous closing price of Rs 2,289.65 apiece.
Reason for rise:-
According to the company filing, Endurance Technologies Ltd ’s subsidiary Endurance Overseas Srl, Italy, (“EOSrl”) has signed a Share Purchase Agreement worth € 37.74 million to acquire 60% stake in Stoferle Automotive GmbH, Germany and Stoferle GmbH, Germany.
Moreover, the SPA includes ‘CALL and PUT options’ for acquiring the remaining 40% stake in the Target companies, which shall be exercised over a period of five years commencing from June 2026.
Furthermore, this acquisition is allied with the business of the company and enable diversification of customer portfolio.
Financial performance:-
Endurance Technologies Ltd revenue jumped by 14 percent on a yearly basis from Rs 2,545 crore in Q2FY24 to Rs 2,913 crore in Q2FY25, however, on a Quarterly basis revenue zoomed by 3.07 percent from Rs 2,826 crore in Q1FY25 to Rs 2,913 crore in Q2Y25.
Moreover, net profit is magnified by 31 percent on a yearly basis from Rs 155 crore in Q2FY24 to Rs 203 crore in Q2FY25, meanwhile on a quarter-on-quarter basis net profit a slight dip of 0.4 percent from Rs 204 crore in Q1FY25 to Rs 203 crore in Q2FY25.
Future projects:-
The company is advancing its operations with projects like AURIC-1 and AURIC-2 in Chh. Sambhajinagar, targeting machined castings for four-wheelers (4W) and other applications. Alloy wheel capacity is expanding, with Chakan now at 5.5 million wheels per annum, and AURIC-2 set to add 4.3 million wheels.
In Waluj and Narsapura, new capacities will fulfill a large Japanese OEM order for scooter front forks, with production starting in January 2025. Additionally, e2W, e3W, and CNG motorcycle manufacturing is scaling up across Waluj and Pantnagar, with production for e2W anticipated by Q4FY25.
Production Capacity:-
The company’s Chakan facility expanded to 5.5 million wheels per year in Q2FY25 by acquiring adjacent land, while a new greenfield site in Chh. Sambhajinagar, with a Rs. 300 crore investment, aims to boost capacity to 9.8 million, securing orders from top OEMs.
The company has boosted disc brake assembly capacity to 6.2 million units per year, with plans underway to expand ABS assembly capacity to 1.2 million units annually by 2026, supporting growth in advanced braking solutions for two-wheelers and other vehicle segments.
Order Book and Future Prospects:-
The company has received ₹17,705 million in quote requests from OEMs and secured ₹36,774 million in business since FY21. New projects, especially in suspension, castings, and brakes, are projected to reach peak sales by FY27, enhancing future growth prospects.
New contract Wins:-
The company secured ₹1,843 million in new business from OEMs beyond Bajaj Auto, including TVS, Hero MotoCorp, and Mahindra. EV-related contracts reached ₹1,061 million, notably with Mahindra for EV 3W. Major wins in suspension and brake assembly were achieved with HMSI and Hero MotoCorp.
Management outlook:-
Management aims to raise the four-wheeler share of consolidated business from 25% to 45% by FY30, focusing on organic and inorganic growth, especially in aluminum die-casting and EV sectors. Despite four-wheeler challenges, they remain optimistic about growth in Indian and European markets.
Company profile:-
Endurance Technologies Limited is an India-based global automotive components manufacturer. The Company has operations in India and Europe (Italy and Germany). In India, the Company predominantly caters to two three- and three-wheeler original equipment manufacturers (OEMs), and its products include aluminum castings, etc.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
