Buy This Auto Ancillary Midcap Stock For 19% Return, Board Recommends 70% Dividend: ICICI Direct

Motilal Oswal in its recent report has assigned a Buy on Endurance Technologies Ltd. (ENDU) with a target price of Rs. 1,50 apiece. Considering the given target price, if you buy the stock at its current market price, it can fetch a gain of up to 19%. It is a midcap Auto Ancillary sector stock with a target price of Rs. 19,601.37 crore.

Recommends Dividend

"Recommended dividend of Rs. 7 per equity share of face value of Rs. 10 each (70%), for the financial year 2022-23," the company said in an exchange filing.

Valuation and view

According to Motilal Oswal, ENDU is the best proxy play for the Indian 2W industry, with scope to increase content, led by technological changes and new products. Coupled with its knowledge of aluminum die-casting in the EU, there is scope to increase the contribution from the PV segment. "The stock trades at 26.7x/23x at FY24E/FY25E consolidated EPS. We maintain our BUY rating with a TP of INR1,650 per share (27x Mar'25E consolidated EPS)," the brokerage has said.

Stock Outlook

The current market price of the stock is Rs. 1,393.50 apiece, up 0.32% from its previous close of Rs. 1,389.05 apiece. Its 52 week high is Rs. 1,565 apiece, and its 52 week low is Rs. 1,175.60 apiece, respectively.

It has fallen 2.15% in 1 week. It jumped 11.91% in 1 month. It has given 15.39% return in 1 year. In 3 years, it has given 126.95% return. In the past 5 years, it has given 10.11% return.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.