Buy Amber Enterprises India; target of Rs 9300: Sharekhan

Sharekhan's research report on Amber Enterprises India

Q1 numbers were healthy amid RAC industry headwinds. Electronics is gaining huge traction with multiple tie-ups and robust capex plan. Revenues grew 44%, sharply higher than our estimates. Operating profits grew 31% to Rs 257 crore with margins falling 72 bps on product mix in the RAC segment. PAT rose 48%. The major focus is on electronics business and company is looking to target a TAM of $ 22bn-25bn across PCB, PCBA, battery storage and other markets.

Outlook

We maintain a Buy rating, factoring in long-term revenue growth triggers across segments with a revised PT of Rs. 9,300. At CMP, the stock trades at a valuation of 71x/45x its FY2026E/FY2027E EPS.