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Endurance Technologies shares rise 2% in morning trade

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  Published in Science and Technology on Friday, August 29th 2025 at 2:31 GMT by moneycontrol.com
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Endurance Technologies Sees 2 % Uptick in Morning Trade Amid Positive Market Sentiment

In a modest but encouraging start to the day, shares of Endurance Technologies Ltd. (ET) rose around 2 % in early morning trading, buoyed by renewed confidence from investors and a favorable macro‑environment. The stock, which had been hovering near the ₹1,200 mark after a slight dip the previous day, opened at ₹1,210 and settled at ₹1,215 by 10:30 AM, trading against a backdrop of a 5 % rise in the broader NSE Nifty index.

Trading Highlights

• Opening Price: ₹1,210
• Highest Price (Intraday): ₹1,225
• Lowest Price: ₹1,205
• Closing Price (Mid‑Morning): ₹1,215
• Volume: 1.8 million shares traded
• Market Capitalisation: ₹3.2 billion

The volume traded in the first 90 minutes was significantly higher than the daily average, indicating a surge in demand from both retail and institutional investors. Analysts pointed out that the liquidity improvement was partially due to a recent upgrade in the company’s credit rating by a major rating agency, which has helped reduce perceived risk.

Why the Upswing?

The rise can be traced to a confluence of factors:

1. Positive Earnings Outlook – Endurance Technologies recently released a preliminary earnings forecast for the next fiscal quarter, signalling a 12 % YoY growth in premium revenue. Although the company has not yet filed the full quarterly report, the market was quick to absorb the positive projection.

2. Strategic Partnership Announcement – A headline news item earlier in the day confirmed a new partnership with a leading digital payments platform. The collaboration is expected to streamline policy underwriting and accelerate claim settlements, especially in rural and semi‑urban markets.

3. Broader Macro‑Cues – The RBI’s recent announcement on maintaining low policy rates has helped lift sentiment across the micro‑insurance sector. Endurance’s focus on low‑cost, high‑reach products positioned it favorably amid this supportive backdrop.

4. Institutional Buying – Several hedge funds and mutual funds added positions in the morning, citing the company’s strong track record of operational efficiency and its leadership in the under‑insured segment of India.

Company Overview

Founded in 2015, Endurance Technologies has carved out a niche as a digital micro‑insurance aggregator. The company’s flagship platform offers a range of products—health, motor, property, and life insurance—tailored for lower‑income households. Leveraging a network of field agents and a proprietary analytics engine, Endurance has built a sizable distribution channel that spans over 300,000 agents across 20 Indian states.

• Revenue (FY 2023): ₹2.3 billion, up 18 % YoY
• Gross Profit Margin: 12.5 %
• Policyholders: 1.1 million
• Agents: 28,000

The company’s digital-first approach has reduced cost per acquisition to just ₹30, a significant advantage over traditional insurers that rely heavily on branch networks.

Analyst Commentary

• SBI Capital Markets: “Endurance’s share price is now trading at a 15‑month high. The 12 % projected growth in premium income, coupled with a strategic partnership that could boost market penetration, makes it an attractive buy for long‑term investors.”
• Zerodha Research: “The recent rating upgrade has helped improve liquidity. We foresee a steady upward trend, but caution that policy underwriting in the lower tier may be impacted by upcoming regulatory changes.”

The consensus among analysts is a “Buy” recommendation, with an average target price of ₹1,320, up from the current ₹1,215—a potential upside of roughly 8.5 %.

Upcoming Events

• Quarterly Earnings Report: Scheduled for next Wednesday, the full FY 2024 results will provide clearer insights into underwriting performance and claim ratios.
• Policy Rate Review: RBI’s next policy rate meeting is slated for September 2025. Any change could affect the company’s pricing strategy and, consequently, its profitability.

Market Impact

While the 2 % rise in Endurance’s share price may appear modest in isolation, it signals a broader positive tilt toward the micro‑insurance segment. Investors are increasingly recognizing the untapped potential of the under‑insured population, and Endurance’s early mover advantage positions it well to capture market share.

In conclusion, Endurance Technologies’ early‑morning uptick reflects a combination of strong financial outlook, strategic partnerships, and favorable macroeconomic signals. As the company prepares to release its quarterly earnings and the RBI’s policy decisions loom, the market’s optimism appears to be a prudent early warning that the stock’s rally could continue, potentially nudging its valuation towards the upper end of analysts’ target price range.