Endurance Tech. (ENDURANCE)

FairStock Score: 66/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong return profile: ROE of 16.10% and ROCE of 17.26% indicate efficient capital allocation.
• Low financial risk: D/E ratio of 0.20, Altman Z-Score of 5.21, and Piotroski F-Score of 8/9 reflect a sound balance sheet.
• Solid growth: sales growth of 19.42%, profit growth of 14.85%, and 5-year revenue CAGR of 12.04% show a compounding business.
• Positive free cash flow of ₹544 crore supports operations and future investments.
• High promoter holding of 75% aligns management interests with minority shareholders.

Concerns

• Expensive valuation: P/E of 40.45 and P/B of 5.88 leave little margin for error.
• Negative margin of safety at -244.14% compared with Graham Number and DCF value.
• Low dividend yield of 0.38% provides negligible income support at the current price.
• Profit growth of 14.85% lags sales growth of 19.42%, suggesting possible margin pressure.

AI Analysis

Let me examine Endurance Tech the way Graham would: quality first, price second. The business quality is evident. The company earns a return on equity of 16.10% and a return on capital of 17.26%, with a debt-equity ratio of only 0.20. The Altman Z-score of 5.21 and Piotroski F-score of 8/9 confirm a healthy financial position. Free cash flow is ₹544 crore, which means earnings are backed by cash, not just accounting entries. Promoter holding of 75% is another positive; owners have skin in the game. Growth is also impressive. Sales rose 19.42% and net profit rose 14.85% in the latest period. The five-year revenue CAGR of 12.04% shows consistency. The latest quarter had sales of ₹3,608 crore and net profit of ₹222 crore. This is a compounder in a competitive auto-components space, though the moat is not as strong as a consumer monopoly. But price is what makes me pause. At ₹2,390.50, market capitalization is ₹37,440 crore, which works out to 40.45 times earnings and 5.88 times book value. Graham's number, computed conservatively, is ₹773.43. The DCF intrinsic value here is ₹2,068.16. Both are below the current price. The margin of safety is negative 244%. That is the opposite of what Graham taught. Even with excellent fundamentals, paying 40 times profit for 14-19% growth leaves little room for disappointment. Dividend yield is only 0.38%, so I cannot wait for income. If the company executes perfectly, it may grow into the valuation, but I do not get a margin of safety today. I would place it on my watchlist and wait for a lower price or a pause in growth that creates opportunity.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer