Amber Enterprises - Electronics, Mobility To Be Future Growth Levers: Nirmal Bang

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..Nirmal Bang Report.We met the management of Amber Enterprises India Pvt. Ltd. They were quite bullish on the room AC space, and expected the RAC industry to double in size in the next three to four years.In FY25, the management expects the RAC industry to grow by ~40%. Within consumer durables, RAC and RAC Components contribute ~70% to the topline. Currently, the split of RAC: RAC Components is at ~50:50. Amber is currently capable of catering to ~70% of the BOM cost in RAC. It expects to maintain market share of ~25% in the RAC manufacturing footprint..Electronics is expected to grow by ~50% in FY25, with an Ebitda margin of ~8%. The management expects to clock double digit margin in the next three years..The order book for SIDWAL stands at ~Rs 21 billion, with order execution expected over the next three years. The management expects revenue to double in this period..We maintain Hold with a revised target price of Rs 4,950. This implies a PE of 42 times on Sept’26E EPS - ~30% discount to the five-year historical average PE on one-yr forward basis. While the contribution from high-margin businesses (RAC and Non-RAC components), expansion of product portfolio under PCBA and PCB and diversification into various electronic applications under Mobility are all positives, scaling up of revenue share and making meaningful contribution to overall margins is still a couple of years away..Click on the attachment to read the full report:.Bata, V-Mart Q2 Results Preview - Mass Category Recovery To Cushion An Otherwise Weak Quarter: Nirmal Bang.DISCLAIMERThis 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.

Amber Enterprises - Electronics, Mobility To Be Future Growth Levers: Nirmal Bang

The brokerage maintains Hold rating on the stock with a revised target price of Rs 4,950.

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