Company profile of Endurance Technologies

Endurance Technologies is one amongst the leading automotive component manufacturer

which are technologically intensive. They are on board since 1986. They merged with
Anurag Engineering company. They usually cater to 4 wheeler focusing on engine and
transmission components
Products: Suspension, Aluminium Die Casting, Transmission, Braking Systems
Values: Customer Centricity, Integrity, Transparency, Team Work, and Innovation

Functioning:
Though the automobile industry has undergone a huge transformation in technology
Endurance was constantly developing their products which ever were demanded by the
market.
They have their Overseas subsidiaries in Italy and Germany one for investment holding and
other was high pressure aluminium diecasting and Machining
• Company grew 50 time in the period of 1996 to 2006.
• Suspension systems , clutch assembly , Disk Brakes helped endurance to find new
customers.
• In 2017 Endurance received grand award from Honda scooters and motorcycles
• They Built a test Track to develop and speed Up the product development
• They Doubled their Market Cap to 177 Billion in 20months with the plan of founder
Anurang Jain.

Initiatives Taken :
Quality Policy
TPM Policy
Environment , Health and Safety

Vision&Mission:
To grow as a complete solution provider of Automotive components and systems having a
global foot print on a chosen portfolio.
To achieve and maintain Leadership with Technology and Product reliability , Environment
and Safety with a Participative work culture of Transparency and Ownership.
The Ultimate Goal of Endurance is to be Present in every two wheeler of the World
 Liquidity Ratios
1)Current Ratio
Formula: Current Ratio = Current Assets/ Current Liabilities
Company Name/Year 2019

Endurance 1.30
Technologies

Alicon Castalloy 1.12

Munjal Showa 3.02

Interpretation: When compared to competitors in the above table Munjal Showa is

having high position in liquidity and Endurance Technologies is having medium position
.Reasonable Chances to Invest.

2)Quick Ratio
Formula: Quick Ratio = Quick Current Assets/Current Liabilities
Companyname/Year 2019

Endurance 0.97
Technologies

Alicon Castalloy 0.84

Munjal Showa 2.57

Interpretation: When Compared to the Competitors Endurance Technologies is having

medium position and reasonable chances to invest since 0.5:1 is standard. Reasonable
chances to Invest.
On whole of Liquidity Interpretation Munjal Showa is leading since having more chances to
invest in short term.
 Operational Efficiency
1)Stock Turnover Ratio
Formula: Cost of Goods sold/Average Stock
Company Name/year 2019
Endurance 19.14
Technologies

Alicon Castalloy 9.68

Munjal Showa 20.78

Interpretation: Endurance is doing Quite good when compared to the other two
companies not having much difference with the highest company though having ample
chances to invest.

2)Debtors Turnover Ratio

Formula: Net Credit Purchases/ Average Debtors
Company Name/year 2019
Endurance 7.73
Technologies

Alicon Castalloy 3.68

Munjal Showa 7.52

Interpretation: In the Above table Debts are being collected rapidly by Endurance
Technologies when compared with other two companies.

3) Creditors turnover Ratio:

Formula : Net Credit Purchases / Average Creditors
 2019

Endurance 19.14
Technologies

Alicon Castalloy 9.68

Munjal Showa 20.78

Interpretation: In Endurance Technologies Accounts are settling moderate when

compared to the other two companies

Profitability Ratios
1)Gross Profit Ratio
Formula : Gross Profit / sales

2019 2018

Endurance 10.26 9.06

Technologies

Alicon Castalloy 9.01 7.87

Munjal Showa 3.72 5.36

Interpretation: This is an indication to investors how much company is earning for every
dollar. A low margin indicates a company is under-pricing. Generally the ideal gross profit is
20% which is considered to be good. Endurance technologies is having high gross profit and
it has increased when compared to last year. So the company is getting high profit margins
when compared to last year.

2)Operational Ratio
Formula: Operational Profit / Net Sales
 2019 2018

Endurance 13.51 12.72

Technologies

Alicon Castalloy 13.2 17.6

Munjal Showa 19.36 15.18

Interpretation: Operating profit ratio indicates how much profit a company makes after
paying for variable costs of production such as wages, raw materials, etc. It is also expressed
as a percentage of sales and then shows the efficiency of the company controlling the costs
and expenses.5% margin is considered as low and 10% is considered average and 20% is
good. Now the company stands with 13.51% which is very high percent and make good
profits also it is increasing from the last year. which is a good sign.

3)Operational Profit Ratio

Formula: Operational Profit / Net Sales
Company Name/year 2019 2018

Endurance 13.51 12.72

Technologies

Alicon Castalloy 12.29 11.09

Munjal Showa 5.28 7.15

Interpretation: A good margin will vary considerably by industry, but as a general rule of
thumb, a 10% net profit margin is considered average, a 20% margin is considered high and a
5% margin is low.so the profit making is really moderate for the company while compared
with the competitors.
4)Net Profit Ratio
Formula: Net Profit / Sales
2019 2018

Endurance 6.6 5.85

Technologies

Alicon Castalloy 4.67 3.89

Munjal Showa 3.74 4.90

Interpretation: The net profit margin is equal to net profit (net income). The net profit
percentage should be minimum 15 to 20% but 40 to 50% then the company is really
enduring. But Endurance is increasing every year in which 2018 it has the ideal profit
percentage whereas now it is reaching to maximum profit levels.

Solvency Ratio
1)Debt Equity Ratio
Formula : Long-term debts/ Share Holder Funds
2019 2018

Endurance 0.10 0.10

Technologies

Alicon Castalloy 0.83 0.86

Munjal Showa -- --

Interpretation: Endurance Technologies implies smaller claim of Creditors when

compared to Alicon Castalloy
2)Interest Coverage Ratio
Formula: Net Profit Before Interest and tax / Fixed Interest Charges
2019

Endurance 33.53
Technologies

Alicon Castalloy 3.16

Munjal Showa 829.91

Interpretation: In the above table Endurance technologies is managing fixed charge

liabilities and assured payment of interest.

SOURCES :

https://www.moneycontrol.com/financials/Endurance/ratiosVI/SNB#SNB
https://www.moneycontrol.com/financials/Alicon Castalloy/profit-lossVI/SNB#SNB
https://www.moneycontrol.com/financials/Munjal Showa/ratiosVI/SNB#SNB
https://www.moneycontrol.com/financials/Endurance/ratiosVI/SNB#SNB

Decision whether to invest in this company or not?

Taking the occasional loss comes part and parcel with investing on the stock market. Amd
there’s no doubt that Endurance Technologies Limited stock has had a really moderate year.
The share price is down a hefty 51% in that time. Because Endurance technologies hasn’t
been listed for many years,the market is still learning about how the business performs.
Furthermore it’s down 34% in about a quarter. but it will not be a good thing for the share
holders.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not
just underlying business performance. One way to examine how market sentiment has
changed over time is to look at the interaction between a company’s share price and its
earnings per share.
Even though the Endurance Technologies share price is down over the year, its EPS actually
improved. It’s quite possible that growth expectations may have been unreasonable in the
past. It’s fair to say that the share price does not seem to be reflecting the EPS growth. So it’s
well worth checking out some other metrics.
Given the yield is quite low, at 0.7%, we doubt the dividend can shed much light on the share
price. Endurance Technologies managed to grow revenue over the last year, which is usually
a real positive. Since we can’t easily explain the share price movement based on these
metrics, it might be worth considering how market sentiment has changed towards the stock.
So finally I will not invest in Endurance company I would rather go to Munjal
showa(competitor).

Balance sheet

Mar 18 Mar 17 Mar 16 Mar 15

Mar 19

12 mths 12 mths 12 mths 12 mths 12

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 140.66 140.66 140.66 17.58
Total Share Capital 140.66 140.66 140.66 17.58
Reserves and Surplus 1,939.29 1,651.60 1,422.40 1,324.88 1,1
Total Reserves and Surplus 1,939.29 1,651.60 1,422.40 1,324.88 1,1
Total Shareholders Funds 2,079.95 1,792.26 1,563.06 1,342.46 1,1
NON-CURRENT LIABILITIES
Long Term Borrowings 2.98 4.96 19.85 78.02 1
Deferred Tax Liabilities [Net] 15.61 1.08 0.00 0.00
Other Long Term Liabilities 4.68 3.08 2.26 2.79
Long Term Provisions 6.28 2.16 16.54 22.65
Total Non-Current Liabilities 29.54 11.28 38.64 103.46 1
CURRENT LIABILITIES
Short Term Borrowings 212.00 178.27 142.49 68.78
Trade Payables 520.76 483.23 347.95 312.10 2
Other Current Liabilities 91.27 121.43 135.67 148.43 1
Short Term Provisions 25.03 19.04 22.28 16.50
Total Current Liabilities 849.06 801.97 648.39 545.81 5
Total Capital And Liabilities 2,958.55 2,605.51 2,250.10 1,991.73 1,8
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,157.49 957.13 838.81 916.52 8
Intangible Assets 4.16 5.70 7.45 6.83
Capital Work-In-Progress 89.78 50.52 33.22 46.39
Intangible Assets Under Development 11.50 4.78 0.40 0.55
Fixed Assets 1,262.94 1,018.13 879.88 970.28 9
Non-Current Investments 365.00 364.77 364.71 364.67 3
Deferred Tax Assets [Net] 0.00 0.00 9.54 10.53
Long Term Loans And Advances 0.00 0.00 0.00 26.09
Other Non-Current Assets 225.00 190.26 171.41 0.64
Total Non-Current Assets 1,852.94 1,573.15 1,425.54 1,372.21 1,3
CURRENT ASSETS
Current Investments 34.82 44.91 31.64 45.58
Inventories 282.98 246.62 249.07 195.31 1
Trade Receivables 694.76 706.57 484.64 316.51 2
Cash And Cash Equivalents 30.43 8.69 2.98 7.58
Short Term Loans And Advances 2.10 1.30 1.62 41.25
OtherCurrentAssets 60.53 24.26 54.61 13.30
Total Current Assets 1,105.61 1,032.36 824.56 619.52 5
Total Assets 2,958.55 2,605.51 2,250.10 1,991.73 1,8
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 312.23 356.98 236.70 258.22 4
CIF VALUE OF IMPORTS
Raw Materials 0.00 0.00 0.00 289.35 3
Stores, Spares And Loose Tools 0.00 0.00 0.00 13.37
Capital Goods 0.00 0.00 0.00 43.10
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 434.20 417.12 0.00 11.52
REMITTANCES IN FOREIGN CURRENCIES
FOR DIVIDENDS
Dividend Remittance In Foreign Currency - - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - - 139.52 1
Other Earnings 143.56 170.51 - 0.07
BONUS DETAILS
Bonus Equity Share Capital - - - -
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market
0.00 0.00 0.01 0.01
Value
Non-Current Investments Unquoted Book
1.24 364.77 364.70 364.66 3
Value
CURRENT INVESTMENTS
Current Investments Quoted Market Value - - - -
Current Investments Unquoted Book Value 34.82 44.91 31.64 45.58
 Mar 18 Mar 17 Mar 16 Mar 15
Mar 19

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 5,341.43 4,680.17 4,194.28 3,987.37 3,768.84
Less: Excise/Sevice Tax/Other Levies 0.00 127.91 400.33 387.25 330.20
Revenue From Operations [Net] 5,341.43 4,552.25 3,793.95 3,600.13 3,438.64
Other Operating Revenues 76.03 88.85 85.87 73.78 71.32
Total Operating Revenues 5,417.46 4,641.10 3,879.82 3,673.91 3,509.96
Other Income 16.22 18.39 12.55 21.98 30.05
Total Revenue 5,433.68 4,659.49 3,892.37 3,695.89 3,540.01
EXPENSES
Cost Of Materials Consumed 3,508.03 3,011.06 2,511.41 2,392.50 2,309.91
Purchase Of Stock-In Trade 23.08 9.09 9.81 7.86 6.31
Changes In Inventories Of FG,WIP And
-7.38 9.43 -43.22 -16.20 -26.17
Stock-In Trade
Employee Benefit Expenses 277.74 254.70 242.18 207.71 185.99
Finance Costs 17.07 10.25 17.86 32.55 41.03
Depreciation And Amortisation Expenses 175.70 169.63 166.86 150.48 157.10
Other Expenses 883.98 766.46 688.60 639.78 619.57
Total Expenses 4,878.22 4,230.61 3,593.49 3,414.66 3,293.73
Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional,

555.46 428.88 298.88 281.22 246.28
ExtraOrdinary Items And Tax
Exceptional Items -20.80 -26.88 0.00 0.00 0.00
Profit/Loss Before Tax 534.66 402.00 298.88 281.22 246.28
Tax Expenses-Continued Operations
Current Tax 159.50 126.12 75.78 71.30 69.40
Deferred Tax 15.79 10.67 1.48 4.33 -4.52
Tax For Earlier Years 1.51 -6.40 0.13 0.00 0.00
Total Tax Expenses 176.80 130.40 77.38 75.63 64.88
Profit/Loss After Tax And Before
357.86 271.60 221.50 205.60 181.40
ExtraOrdinary Items
Profit/Loss From Continuing
357.86 271.60 221.50 205.60 181.40
Operations
Profit/Loss For The Period 357.86 271.60 221.50 205.60 181.40
Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 25.44 19.31 15.75 14.62 12.89
Diluted EPS (Rs.) 25.44 19.31 15.75 14.62 12.89
VALUE OF IMPORTED AND INDIGENIOUS
RAW MATERIALS
Imported Raw Materials 0.00 0.00 0.00 314.82 340.90
Indigenous Raw Materials 0.00 0.00 0.00 2,087.09 1,981.14
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 0.00 0.00 0.00 17.60 13.39
Indigenous Stores And Spares 0.00 0.00 0.00 56.24 60.92
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 56.27 35.17 5.28 17.58 12.31
Preference Share Dividend 0.00 0.00 0.00 0.00 0.06
Tax On Dividend 11.57 7.16 1.07 3.58 2.52
Equity Dividend Rate (%) 55.00 40.00 25.00 74.00 70.00
Profit and Loss sheet