Scheduled to Open from 5-7 October.
Price Band. Rs.467-472
Issue size. Rs.1162
crores
OFS of. 17.5%
Market cap at upper Band. Rs.
6640 crores.
Anurang Jain is first gen entrepreneur who runs the show
from last 30 years.
He started operations in year 1985-86 at Aurangabad with
Bajaj Auto.
Today Endurance is OEM Suppliers for large companies with 18
manufacturing facilities in India and 7 facilities in Europe.
Geographical break up of revenues.
India. 70%
Europe 30%
Product wise
Aluminium die casting.
63%
Suspension 22%
Transmission 5.5%
Braking system 4.6%
After sales 3.3%
Focussed R&D player with total strength of 167 people
and last year spend total 1.3% of sales equivalent to 48 crores.
India business is virtually debt free and run on sub 12.5%
margin
With European business which fully acquired in year 2006
garnering 15.6%.
Going ahead company and Mr.Anurang Jain is very clear about maintain
current healthy Return ratios of 20% and above.
Some key areas n
takeaways from meet are as follows
- · Focus on European business as there they do complex casting works for companies like Fiat n Daimler and so garnered 15% plus margins.
- · R&D is big focus area.
- · Aftermarket sales is healthy 17% margin business which growing at sub 18-19% is other focus.
- · Focussing on improving operational efficiencies by having multi product plant, automation technique used extensively which not only saving cost but also maintaining quality, by consolidation of plants.
- · Successfully reducing debt equity ratio to 0.4x from 0.6x.
- · European business runs at almost full capacity while Indian operations are sub70%..
- · By 2018 developing in-house testing facility for their product at Aurangabad which helps them to gain confidence from OEM.
- · As of now Bajaj auto contributes 40.8% of total revenues.
- · Going ahead having focus on 2&3 wheeler in India and for European operations continue to focus on CV and passenger cars.
·
In India not find any interesting acquisition
target but focus is more towards European market for acquisition.
·
100% hedge their forex exposure.
At last can say Mr. Anurang Jain is running the entire show
and having a very deep understanding about industry and very focused to adopt
newer technologies as well as keep open to invest in R&D facilities to come
out with newer product which makes help them to do value engineering for OEMs.
Some statistics FY16
Total sales 5275 Crores
India sales. 3700
crores
Blended margin 13.5%
India margin. 12.5%
Europe margin. 15.6%
Aftermarket margin. 17.5%
Total Patents.
4
Waiting for patents.
41.
No comments :
Post a Comment