MOSL: ENDURANCE TECHNOLOGIES (Buy)-All EU plants working, but utilizations down
(ENDU IN, Mkt Cap USD1.4b, CMP INR724, TP INR1025, 42% Upside, Buy)
We interacted with the senior management of Endurance Technologies (ENDU) to get an update on the company’s business/industry. ENDU’s management has stated that both its businesses are so far operating without any material impact of disruption caused by the Coronavirus (COVID-19). Key insights highlighted below:
** All of ENDU’s 9 plants (6 in Italy + 3 in Germany) in EU are operational. ENDU’s plants in Italy are primarily located in the Turin region, while Lombardy and Venice regions are facing shutdowns (quarantine). Even its collaborator, Adler’s plant in Milan is operational.
** EU operations are meeting 100% of its production schedules and have not lost any business, though operating rates have reduced.
** Over the last 6-7 years, Italian plants have strategically shifted focus toward German customers, which is now reflected in Volkswagon (VW) group being its largest customer. German plants can partly make up for the short fall of Italian plants if the situation worsens.
** Production schedules in India are yet to see any material change. However, 1QFY21 could see some changes as they transit to BS6 in this environment. 2W OEMs in the near term are focused on liquidating BS4 inventory, particularly the few larger players.
** ENDU has benefitted from the supply disruption in China. One of the OEMs has brought forward the sourcing of brakes from ENDU due to the disruption.
** Exports from India are so far normal. ENDU exports machined castings to Getrag in Mexico, the UK and France.
** For its India operations, ENDU sources certain components from China. However, it also has an alternate source for these components in India as well, thereby ensuring continuity of operations.
Endurance Technologies Ltd (CN) is an India-based automotive component manufacturer company. The Company is engaged in manufacturing of aluminium die castings (including alloy wheels), suspension, transmission and braking products. The Companys products include aluminium die casting, which offers high pressure die castings, low pressure die castings, gravity die castings, and alloy wheels; suspension which offers shock absorbers, motorcycle front forks, and hydraulic & gas charged dampers, macpherson struts, gas springs for cars ; transmission which offers clutch assemblies, continuous variable transmissions (CVTs), and friction plates; and braking, which offers hydraulic disc brakes, tandem master cylinder assemblies, hydraulic drum brakes, and non-asbestos brake shoes.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.