Reduce Amber Enterprises India; target of Rs 3,850: ICICI Securities

ICICI Securities recommended accumulate rating on Amber Enterprises India with a target price of Rs 3,850 in its research report dated July 29, 2024.

Broker Research

August 06, 2024 / 12:18 IST

Reduce

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securitie's research report on Amber Enterprises India

Amber’s strategic expansion of its PCBA manufacturing from RAC-PCBA manufacturer in FY18 to comprehensive EMS service provider now seems justified due to strong growth prospects of EMS sector (30-40% growth YoY). Additionally, business tailwinds like imposing of anti-dumping duty on PCBs may further boost growth prospects. Amber’s guidance of 45%-plus revenue growth (from earlier 35%) and 7-7.5% margin in FY25 seems achievable led by (1) strong orderbook and (2) order wins in margin-accretive defence segment.

Outlook

Amber’s transition from mere RAC contract manufacturer to comprehensive EMS solution provider is playing out well. With the stock price surging 80% in the last 12 months, we revise our rating to REDUCE from HOLD with DCFbased revised TP of INR 3,850 (implied FY26E P/E: 46x).

For all recommendations report, click here