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Endurance stock nears record high. What's driving 95% rally from April low?
In the past week, the stock has rallied 21 per cent, as compared to a 1 per cent gain in the BSE Sensex. The market price of the auto ancillary company has bounced back 95 per cent from its 52-week low of ₹1,555.65 touched on April 7, 2025. The stock surpassed its previous high of ₹2,816.90, which it had on July 5, 2024. It hit a record high of ₹3,059.05 on June 14, 2024.
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What's driving Endurance share price?
The current movement in the company's share price is solely influenced by broader market dynamics and driven by market news, which are beyond the Company's control, Endurance had said on June 25 in clarification of share price movement.
According to media sources, the Indian government has approved a new mandate requiring all new two-wheelers -- scooters, motorcycles, and bikes -- to be equipped with anti-lock braking systems (ABS), regardless of engine capacity, starting January 1, 2026.
This regulation extends the current requirement, which applied only to models above 125cc, to the entire two-wheeler segment. The move aims to significantly reduce road accidents and fatalities, particularly head injuries, as two-wheelers account for a significant portion of both accidents and deaths on Indian roads.
According to ICICI Securities, this will provide new opportunity for the ancillary space with annual opportunity size pegged at ₹3,000-6,000 crore with major beneficiaries being Bosch Ltd and Endurance Technologies among others.
The change, however, will be positive for component suppliers who make ABS and Disc brakes. For ABS, Bosch and Continental (unlisted) are the leading players. In Disc brakes/ Systems, Endurance is the largest player with 60 per cent/42 per cent market share, analysts at Nomura said in the auto sector report. ALSO READ:
Meanwhile, according to ICRA, the domestic auto component industry is in a transitory phase with the automotive players increasingly focusing on sustainability, innovation and global competitiveness. Demand from domestic OEMs, which constitutes over half of the industry revenues, is estimated to grow by 8-10 per cent in FY26. Part of the growth would stem from the premiumisation of components and higher value addition. Growth in replacement demand is pegged at 7-9 per cent in FY2026, driven by an increase in vehicle parc, higher average age of vehicles/used car purchases, preventive maintenance and growth in organised spare parts, among other reasons.
Endurance's Management commentary
As per the Society of Indian Automobile Manufacturers (SIAM) report, forecasts for a favourable monsoon helping rural areas, strong replacement demand, and government support for the purchase of electric vehicles would be factors for the growth of two-wheelers in this financial year.
The management in the Q4 earnings conference call said that moderating inflation, coupled with higher capital expenditure proposals in the Union Budget this year, is expected to spur consumption and investment. ALSO READ: BEL share price up 3%, hits record high on ₹528-cr order win; do you own?
While Endurance's India business is fairly insulated from U.S. markets, certain components made by European plants do find a way into the U.S., particularly components for the higher-segment cars. The management said the company awaits clarity on the U.S. duty structure, and it also remains to be seen if duty changes would drive consumer preference away from niche European models.
With anticipated growth in two-wheeler industry volumes, a focus on product premiumisation, and a strategic shift towards four-wheeler, coupled with encouraging performance in the European Union business despite a challenging environment, the company is expected to witness an improvement in Ebitda margins.
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