Sharekhan's research report on Amber Enterprises
Amber Enterprises’ (Amber’s) Q3FY2023 performance was mixed as component sales were robust but profitability was impacted due to high interest and depreciation. Structural changes in the manufacturing landscape of RAC would tilt the company’s revenue towards components rather than finished goods. The company is confident of maintaining 26-28% market share in manufacturing industry of RACs. Long-term growth would be driven by demand for RAC components, mobility, motor and electronics as well as traction in exports. Company guided for 30% growth in EBITDA in FY24E but refrained from giving margin guidance.
Outlook
We maintain a Buy rating with a revised PT of Rs. 2,360. We believe, profitability should improve following ramp up in capacity utilization and once non-RAC components achieve scalability.
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