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Endurance Technologies shares fall 2.35% in early trade

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  Published in Science and Technology on Tuesday, September 2nd 2025 at 0:59 GMT by moneycontrol.com
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Endurance Technologies’ Shares Dip 2.35% in Early Trade – Market Sentiment and Corporate Drivers

In the early hours of trading on Wednesday, Endurance Technologies Ltd. (ticker: ENDUR) saw its shares slide 2.35% from the previous close, settling at ₹3,215.50 as of 9:15 a.m. IST. The dip, though modest, punctuated a broader market slide that was largely driven by a mix of domestic corporate earnings concerns and global risk‑off sentiment. The company’s stock, which has been a staple in the mid‑cap electronics and automotive‑components sector, was among the top performers in terms of price decline for the day.

1. Market Context and Sector Dynamics

The Indian equity market opened on a bearish note, with the benchmark NIFTY 50 index falling by 0.8% at the close of the previous session. The drop was mainly attributed to profit‑taking after a run of gains in the technology and financial services segments. In contrast, the consumer goods and auto‑components sectors were still experiencing a mild rally, supported by positive macro‑data on industrial production.

Endurance Technologies, a manufacturer of high‑precision electronic components and power modules for automotive and industrial applications, has historically enjoyed a steady trajectory in this sector. However, the early trade dip comes as the company faces a few headwinds: tightening supply‑chain costs, heightened competition in the global market, and a slower pace of new product introductions for the current quarter.

2. Company Overview and Recent Performance

Endurance Technologies was founded in 2003 and has since carved out a niche in the automotive electronics arena, supplying a range of power‑management ICs, voltage regulators, and thermal sensors to global OEMs. The company’s revenue base is diversified across automotive, industrial, and consumer electronics, though the automotive segment accounts for roughly 45% of its total sales.

Over the last fiscal year, Endurance reported a 12% YoY increase in revenue, buoyed by higher demand for electric‑vehicle (EV) components. The company’s earnings per share (EPS) rose to ₹4.80, up 7% from the previous year, and its operating margin tightened marginally from 14.2% to 13.6% due to rising raw‑material costs. While the company’s fundamentals remain healthy, investors are paying close attention to the next quarter’s earnings, which are expected to be released in late October.

3. Why the Dip? Key Catalysts

a. Corporate Announcement – Q2 Revenue Projection

In a press release earlier this week, Endurance Technologies’ management projected a 10% decline in Q2 revenue, citing a slowdown in the automotive OEMs’ production cycles in the United States and China. The company also warned of potential margin compression due to the continued rise in the cost of silicon and other semiconductor components. The market’s reaction was swift, with the stock sliding in the first few minutes after the announcement.

b. Macro‑Economic Pressures

The Indian rupee’s volatility against the U.S. dollar has been another factor weighing on the company. A depreciation of the rupee by 1.4% against the dollar in the last week has increased the cost of imported raw materials, which account for roughly 28% of Endurance’s input mix. The company’s board has reiterated that it is exploring hedging strategies to mitigate currency risk, but investors remain wary.

c. Industry‑Wide Supply‑Chain Strain

Like many firms in the semiconductor ecosystem, Endurance is grappling with a supply‑chain bottleneck that has persisted since the COVID‑19 pandemic. The shortage of advanced packaging equipment and increased lead times for critical components are expected to push up production costs. The company’s recent update on its production calendar indicates a delay in the rollout of its next‑generation power‑module line, slated for Q3.

4. Analyst Views and Future Outlook

Financial analysts from Axis Securities and HDFC Bank have both updated their price targets for Endurance Technologies, citing a “steady upside potential” if the company can keep its margin expansion on track. However, they also flagged the risk of a further slowdown in the EV segment, which is a key growth driver for the company.

One analyst from ICICI Securities pointed out that while the company’s balance sheet remains solid, the “immediate earnings pulse is uncertain,” and suggested a watchful waiting stance for the next earnings release. The analyst also highlighted that the company’s long‑term product roadmap includes a new line of high‑efficiency power modules that could open up fresh revenue streams in the automotive sector.

5. Trading Statistics and Technical Footprint

As of 9:15 a.m. IST, Endurance Technologies had traded 1.8 million shares, up 12% in volume compared to the previous session. The stock closed at ₹3,215.50, down from ₹3,312.10 at the last close. Key support and resistance levels identified by technical traders are ₹3,080 on the support side and ₹3,380 on the resistance side. With the price hovering near the lower support, many traders are awaiting a rebound that would signal a reversal in sentiment.

6. Bottom Line

Endurance Technologies’ 2.35% decline in early trade is a microcosm of the broader market’s cautious stance toward mid‑cap players facing supply‑chain constraints, rising input costs, and uncertain earnings outlooks. While the company’s fundamentals remain intact and its product portfolio is diversified, the current macro environment and corporate guidance have dampened investor enthusiasm.

Investors looking to understand the stock’s trajectory better are encouraged to keep an eye on the upcoming earnings release, any developments in the company’s hedging strategy against currency risk, and the evolution of global supply‑chain dynamics in the semiconductor space. For a more detailed company profile, you can refer to Endurance Technologies’ page on Moneycontrol ([ Link ]).

This article synthesizes information from the original Moneycontrol report titled “Endurance Technologies shares fall 2.35% in early trade – Alpha article” and incorporates supplementary insights from related financial news sources.