auto_1000_356Endurance Technologies Ltd is set to list on 19/10/16 and based on response to IPO, general market conditions, firm Grey Market trend, its track record on revenue and profit front, a reasonable listing gain seems to be on cards. While the undercurrents are strong a look at some factor can help one to decide whether to sell or retain the share and price expectations thereof.

 Endurance Technologies Ltd product mix is distributed as follows:  (Rs. in Lacs)
Product Type Revenue by product catg % of total Business Comparable companies in respective area
Aluminium castings including alloy wheels 32,901.92 62.80% Aluminium casting-  1) Rockman Industries(Hero Group) 2) Sundram clayton: Sales: 12600   cr.  PE  24.92 3) Rico Auto: Sales: 1021   cr. ; PE Ratio: 29.56 Alloy Wheels – 1) Rockman Industries(Hero Group) 2) Alicon Castalloy :  Sales: 684 cr ;PE Ratio: 23.39
Suspension 12224.16 23.33% 1) Munjal Showa, Sales:  1501 cr.  PE Ratio:13.58 2)Gabriel India  Sales:  1438    cr.  PE Ratio:22.56
Transmission components 2858.67 5.46% Same
Brake systems …. 2433.33 4.64% Nissin ,
Aftermarket services 1974.86 3.77%
Sizable business is derived by  Endurance Technologies Ltd  from Aluminium casting and alloy wheels. Rockman Industries of Hero Group appears to be nearest peer to  Endurance Technologies Ltd  with presence in both aluminum casting and alloy wheels but is not listed. Next in line are Sundram clayton: Sales: 12600   cr.  PE  24.92 (only aluminum casting) but with diversified operations, Rico Auto: Sales: 1021   cr. ; PE Ratio: 29.56 (Casting).   Alicon Castalloy :  Sales: 684;PE Ratio: 23.39  with presence in alloy wheels is also compareable though  Endurance Technologies Ltd  is a much bigger company. Comparison with above and some other Peers in a broad sense in auto ancillary space  (Rs.In crores)
 Company Endurance Tech Bharat Forge Motherson Gabriel Munjal Showa Rico Auto Alicon Castalloy
Revenue 5,273 7,838 38,395 1,438 1,501 1,021 684
Face Value 10 2 1 1 2 1 5
Operating Profit 413 1413.29 3425.2 131.12 127.44 93.98 77.71
OPM 7.83% 18.03% 8.92% 9.12% 8.49% 9.20% 11.36%
Net Profit 290.9 647 1273.7 75.25 61.15 29.44 22.38
NPM 5.52% 8.25% 3.32% 5.23% 4.07% 2.88% 3.27%
Share Capital 140.66 46.57 132.3 14.37 8 13.53 6.13
EPS 20.68 27.79 9.63 5.24 15.29 2.18 18.25
Market/Issue Price 472 905.25 331.4 118.75 207.7 64.45 426.8
P/E 22.82 32.57 34.41 22.66 13.58 29.56 23.39
RONW 19.93% 18.18% 30.00% 19.80% 13.50% 6.26% 14.82%
NAV 103.38 153.61 32.09 26.45 113.24 34.78 127.74
CAGR Sales 3 years 11.09% 13.96% 14.90% 6.06% -3.89% -12.56% 16.52%
CAGR NP 3 Years 19.70% 31.10% 42.34% 20.67% -1.71% _ 0.98%
If the stock is assumed to command  PE of 25,  Endurance Technologies Ltd  shall list at   Rs. 512 ( IPO price 472/-) At a PE of 28 which will be higher compared to other peers as on date but cannot be ruled out due to various factors, it can command a price of  Rs. 579/-. New: Endurance  Technologies has listed on a very strong note and looking at its strong debut , it may sustain a price of 600+ at PE of 29-30. Related Posts : 

Endurance Technologies: Run up to the IPO 

Endurance Technologies: IPO Analysis 

http://www.ipoandmore.com/2016/09/27/endurance-tech-ipo-compararion-peers/ 

Standard disclaimer:  I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.