Prime Stock Recommendation: Play the 2-wheeler recovery

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12 thoughts on “Prime Stock Recommendation: Play the 2-wheeler recovery”

  1. Aravinth Kumar Rajendran

    Thanks for the recommendation and detailed analysis. Is endurance product portfolio similar to Sona Comstar or they cater to different segments in auto ancillary?

    1. N V Chandrachoodamani

      Welcome your query sir,

      The product portfolio of endurance is totally different, as mentioned in report.

      It’s mainstay business is aluminium die-casting for 2W in India and CARS in Europe. This business has flexibility to make components for both conventional vehicles as well as EV according to customer requirements

      Of late, it has diversified into niche and premium products such as inverted front forks, mono shocks, anti-lock braking systems, catering to high end 2 Wheelers. These are the major growth drivers for the company and has both conventional and EV players as its customers as these products are common.

      Hope this clarifies

      For your info, Sona’s mainstay business is differential assemblies and Sundram Fastners is a major player in that space. Sundram Fastners has been winning siginficant EV contracts from overseas customers as well of late.
      https://www.autocarpro.in/news/sundram-fasteners-bags-$250-million-worth-of-orders-in-ev-space-113863

      Thank You

  2. Chidambaram Ramanathan

    Will FAME2 withdrawal from government have any positive impact on this stock?

    1. N V Chandrachoodamani

      Welcome your query sir,

      Don’t think so. Because if EV sales comes down, ICE sales will go up.
      And the Co supplies to players in both the segments.

      Cos growth will be affected only in the event of total sales volume coming down.

      Otherwise, the Co is unlikely to see any material impact of FAME 2 subsidy withdrawal

      Thank you

  3. Naga Chokkanathan

    Thanks for the detailed article. Is there a reason why your articles on stocks don’t contain stock symbol of the company? It will be helpful to ensure people don’t invest in “similar sounding” companies.

    1. N V Chandrachoodamani

      Welcome your query sir,

      We have the NSE & BSE symbol in “Prime Stocks” page.
      Will see if we can give the appropriate link in the article itself in future.

      Thank you

  4. Thanks for this insightful article. Endurance has been on my radar for sometime and i was tracking it. Its less presence in 4 wheelers and slow growth in 2 wheeler sales was making me circumspect. But this article has given some conviction!

    1. Please give target price and expected holding period to achieve the same.Thanks for the insightful article!!

      1. We don’t give target price like brokerages. We sound you off when we move it to a hold or a sell. Vidya

        1. Without a price or time target, one is just groping in the dark .Every stock pick should have some estimated rough time or price horizons!!!

          1. N V Chandrachoodamani

            Welcome your query sir,

            We generally don’t pick stock for reco. where we don’t see upside of 20% or more in a year.

            Pl. check on the PrimeStocks page on how we classify our recommendations and the nature of recommendation
            https://staging.primeinvestor.in/prime-stocks/#

            Our idea is to pick Cos at fair valuation and keep them in portfolio so long as they deliver earnings grwoth and still trade at reasonable valuation

            We also come up with udpates where the stock is performing in line with our expectations or there are events that require attention and updates

            Hope this clarifies

            Thank you

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