Buy Amber Enterprises; target of Rs 2929: YES Securities

YES Securities is bullish on Amber Enterprises has recommended buy rating on the stock with a target price of Rs 2929 in its research report dated July 03, 2023.

Broker Research

July 11, 2023 / 13:34 IST

Buy

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YES Securities' research report on Amber Enterprises

Our interaction with management of the company suggest Amber is gradually transforming into an air-conditioning solutions provider, thereby improving its wallet share from brands that have or are in process of setting up captive manufacturing capabilities. Amber is expected to outperform the industry as i) Completed reliability testing for critical electronic/mechanical components for RAC and is also winning orders ii) Acquired capabilities and approvals for Railways, which is aggressively increasing AC coaches. iii) Expects small exports order in the current fiscal, being on the verge of completion of 3-year testing period; iv) Launching new product categories of wearables, hearables, and telecom products; v) Major capex cycle is over, which will boost utilization levels and improve return ratios. Given its leadership position in outsourced RAC market, as also the potential to outperform RAC industry in medium term, we are upbeat about the stock.

Outlook

We continue with our BUY rating at a TP of Rs2,929 valuing the company at 30x FY25 EPS.

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