NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
Amber Enterprises India Pvt. Ltd.’s Q1 came healthy (revenue/Ebitda/profit after tax up 41%/49%/ 59% YoY), driven by consumer durables (room AC, components) and electronics EMS segments. Strong summer season drove 50% YoY rise in RAC sales (versus 35% growth for industry). Non–RAC components also grew by a healthy 39% YoY. Below normal AC inventory in channel and in company will drive demand from Q3 as channels start restocking.
New BEE norms from Jan 01, 2026 will drive sales from Q3 FY26. Fully automatic washing machine will contribute fully from FY27. Given strong order book, electronics segment is now likely to grow by 45% YoY in FY25 versus 35% guided earlier, with ~8% Ebitda margin; printed circuit board will be a big growth driver going forward.
Railway Subsystems faced slow lifting of materials by Indian railways and metro; strong order book (Rs 20.75 billion) and new product additions provide long-term growth visibility.
Overall, Amber Enterprises aims 25% YoY revenue growth in FY25, driven by consumer durables and electronics EMS segments. Despite healthy Q1, we cut FY25 revenue/PAT estimates by 4%/2% on management guidance of flattish revenue in railway subsystem and maintain them for FY26.
We expect 27%/32% /74% CAGR in revenue/Ebitda/PAT over FY24-26E (FY19-24: 20%/18%/7%) with ~16% return on capital employed in FY26E.
Product portfolio expansion for new applications, backward integration and superior mix will drive revenue, margin and RoCE (19-21% RoCE by FY28, as per management; key to sustain valuation re-rating).
At 37 times FY26 P/E on current market price, we maintain Hold with an unchanged target price of Rs 4,773 (40x FY26E P/E).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
Amber Group Acquires Shogini Technoarts To Expand PCB Operations
'Buy' Bharat Electronics Shares For An Upside Of 20% Says Geojit On Multi Year Growth Visibility
Torrent Pharma, Apollo Hospitals, Hitachi, Somany, Lupin, J Kumar, MCX, Aster, Amber & More Q2 Review
3M India Q2 Review: ICICI Securities Raises Target Price After Stellar Quarter — Check Details
POPULAR