Valuation Metrics Signal Enhanced Price Appeal
Endurance Technologies currently trades at a P/E ratio of 40.93, a figure that, while elevated in absolute terms, represents a relative improvement compared to its historical averages and peer group valuations. The company’s P/BV stands at 5.71, reflecting a premium but one that has become more palatable given the company’s robust return metrics and growth prospects. The enterprise value to EBITDA (EV/EBITDA) ratio is 20.83, indicating a valuation level that is attractive relative to several key competitors in the auto components space.
These valuation shifts have prompted a re-rating by analysts, with the MarketsMOJO Mojo Grade upgraded from Hold to Buy as of 1 January 2026. The Mojo Score now stands at a strong 71.0, underscoring improved investor sentiment and confidence in the company’s fundamentals.
Comparative Peer Analysis Highlights Relative Strength
When benchmarked against peers, Endurance Technologies’ valuation appears more compelling. For instance, Motherson Wiring trades at a P/E of 52.95 and an EV/EBITDA of 31.63, while ZF Commercial’s P/E ratio is even higher at 57.67 with an EV/EBITDA of 42.07. Other notable peers such as Gabriel India and JBM Auto command P/E ratios above 58 and 71 respectively, with correspondingly elevated EV/EBITDA multiples.
In contrast, Endurance’s valuation metrics suggest a more reasonable price point, especially when considering its return on capital employed (ROCE) of 17.50% and return on equity (ROE) of 13.96%. These returns are indicative of efficient capital utilisation and profitability, justifying the premium valuation relative to the broader sector.
Market Performance and Price Movements
Despite the positive valuation shift, Endurance Technologies’ stock price has experienced some short-term pressure. The share closed at ₹2,542.20 on 2 January 2026, down 1.85% from the previous close of ₹2,590.20. The stock’s 52-week high is ₹3,078.95, while the low stands at ₹1,555.65, reflecting significant volatility over the past year.
Returns over various periods reveal a mixed picture. The stock has underperformed the Sensex over the past week and month, with declines of 1.52% and 5.49% respectively, compared to the Sensex’s more modest falls of 0.26% and 0.53%. However, over longer horizons, Endurance has outpaced the benchmark, delivering a 12.15% return over the past year versus Sensex’s 8.51%, and an impressive 84.17% over three years compared to the Sensex’s 40.02%.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- - Highest rated stock selection
- - Multi-parameter screening cleared
- - Large Cap quality pick
Financial Quality and Growth Prospects
Endurance Technologies’ financial health remains robust, supported by a dividend yield of 0.39%, which, while modest, aligns with the company’s reinvestment strategy to fuel growth. The PEG ratio of 3.02 suggests that the stock’s price growth expectations are somewhat elevated relative to earnings growth, but this is tempered by the company’s consistent operational performance.
The company’s EV to capital employed ratio of 5.72 and EV to sales of 2.81 further reinforce the valuation attractiveness, indicating efficient use of capital and reasonable pricing relative to revenue generation. These metrics, combined with strong ROCE and ROE figures, highlight Endurance’s ability to generate shareholder value sustainably.
Sector Outlook and Valuation Context
The auto components sector continues to face challenges from global supply chain disruptions and evolving automotive technologies. However, companies like Endurance Technologies that maintain strong operational metrics and disciplined capital allocation are better positioned to navigate these headwinds.
Within this context, Endurance’s valuation improvement is particularly noteworthy. Its current attractive rating contrasts with several peers classified as expensive or very expensive, such as Jupiter Wagons and Minda Corp, which have P/E ratios exceeding 50 and EV/EBITDA multiples above 24. This relative valuation advantage could attract investors seeking quality exposure in the auto components space at a more reasonable price.
Want to dive deeper on Endurance Technologies Ltd.? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Investment Implications and Outlook
For investors, the shift in Endurance Technologies’ valuation parameters signals an opportunity to consider the stock within a diversified portfolio focused on quality auto components players. The upgrade to a Buy rating by MarketsMOJO reflects confidence in the company’s earnings trajectory and relative valuation appeal.
While the stock has experienced short-term volatility, its long-term performance relative to the Sensex and sector peers remains compelling. The company’s strong ROCE and ROE, combined with a reasonable PEG ratio and improved valuation grades, suggest that Endurance is well-positioned to capitalise on the gradual recovery and growth in the automotive sector.
Investors should, however, remain mindful of broader macroeconomic factors and sector-specific risks, including raw material cost fluctuations and technological shifts towards electric vehicles, which could impact future earnings and valuations.
Conclusion
Endurance Technologies Ltd’s recent valuation upgrade from fair to attractive marks a significant milestone in its market perception. Supported by solid financial metrics and a favourable peer comparison, the stock offers a compelling risk-reward profile for investors seeking exposure to the auto components sector. The company’s ability to sustain returns and manage growth effectively will be critical in maintaining this valuation premium going forward.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
