Thread by @LearningEleven

#DoYouKnow
The Indian automotive parts aluminium die casting market was valued at USD 1.09 Billion in 2020 & is expected to reach USD 1.81 Billion by the year 2026 at a CAGR of 8.8 %

Endurance is the largest aluminium die-casting company in India (in terms of installed capacity)

Strong hands hold 98.01%

Endurance is hosting 6 different investment firms in June' 22.

Imagine what could happen to the price if "Institutional Interesting" is raising...!

Endurance received EV orders worth Rs 1.4 Bn in first 9 months of FY22 in 2W and 3W segment

Endurance has four product categories
1. Aluminum Casting and Machining
2. Suspension
3. Transmission
4. Braking Systems

In FY21, they have added another product line called "Drive shafts" for 3Ws & PVs. Total annual addressable size of drive shaft is ~Rs20b between 3Ws & 4Ws.

Endurance has hired a new leader to lead "Aftermarket Sales" in 2020 & the aftermarket sales (with presence in 31 countries) went up from 297Cr in FY20 to 421Cr by FY22.

In FY22, Endurance Europe have won €53.91 million business from Porsche, Daimler, CNH, BMW & Stellantis.

Endurance by numbers

25 Patents & 18 design registrations received PLUS 83 Patent applications & 4 design applications in progress

Around 75.4% revenue comes from India and ~24.6% revenue comes from Europe.

Revenue split by type: 2W - 60.6%, 4W – 29.8%, 3W and others – 9.6%

Endurance Client base

Key Indian customers - Bajaj Auto, Honda 2W, Hero MotoCorp, Royal Enfield, M&M, Piaggio, Yamaha, TVS, Tata Motors, Hyundai and Kia

Key European customers - Porsche, Daimler, CNH, Stellantis, Audi, VW, FCA, Maserati and BMW

Bajaj is the largest customer

Endurance - How it started?

Anurang Jain, nephew of Rahul Bajaj, started it in 1985 to supply aluminum castings to Bajaj Auto.

Anurang 's twin brother Tarang Jain runs his own auto components firm called Varroc Engineering.

Endurance has 19 plants in India and 10 in Europe.

Endurance also has 4 Department of Scientific & Industrial Research (DSIR) approved R&D facilities in India.

It is a Tech savvy company. They keep adding new patents every year. Have acquired Veicoli SRL (Italy), a software company that provides fleet management services in 2021

Even though Endurance is the largest Aluminium Die Casting company, there is still plenty of room to grow as the market is still fragmented. EV push should drive the consolidation in the market (aluminium per car will significantly go up in EV vehicles)

Anti-thesis for Endurance

1. About 30% revenue comes from Europe and EU market is slowing down and could even get into recession.

2. Gas & Electricity prices in Germany and Italy are thru the roof. They have hurt 5-6% EBITDA in H2FY22

Anti-thesis for Endurance

3. Although they have diversified their customer base, Bajaj still is their largest customer and fortunes of Bajaj Auto could influence the fortunes of Endurance.