Buy Amber Enterprises; target of Rs 3550: Sharekhan

Sharekhan's research report on Amber Enterprises

As per our interaction with the company, its broad customer base and increased offerings in RAC components would boost growth. Increasing localisation in RAC/non-RAC components (45-50% by year-end and 70-80% by 2030) as a result of PLI schemes and growing export opportunities bode well for EMS players like Amber. Strong growth prospects of mobility, electronics and motors division would help the company diversify its business further and improve margin profile going forward.

Outlook

We build in a Revenue/PAT CAGR of ~17%/37% (FY23-FY26E). We expect improvement in return ratios and cash flows due to growing profitability, decline in debt, and absence of major capex in the coming years. Thus, we maintain our Buy rating with a revised PT of Rs. 3,550, rolling forward our estimates on September 2025E EPS.

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