Endurance Technologies is a strong OEM supplier to the 2-wheeler industry; new order wins and increased content per vehicle to drive growth over the long term

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Endurance Technologies is a leading auto ancillary with all the marquee OEMs as its customers. It derives majority of its revenues from supply to 2-Wheeler OEMs and is therefore an ideal play on that segment of the auto industry. The recent Covid-19 pandemic had led to a crash in sales, then a recovery and again a deep slowdown due to the second Covid wave. It is for this reason that we have a neutral weight rating despite strong position as a leading OEM component supplier and opportunity to increase the content per vehicle particularly in the Anti-Braking systems where Bosch has near monopoly. High dependence on Bajaj Auto is a risk factor but management is actively trying to reduce this client concentration – 18-08-2021 Price: 1592.00 Rating: Neutral Weight Recommendation: Hold

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