Sharekhan's research report on Amber Enterprises
Q2 numbers were strong with a profit of Rs. 21 crore (versus a loss in the same quarter last year), superseding our estimates of Rs. 9 crore. Revenues rose 82% y-o-y (above our estimates of 37%) led by Consumer Durables (94% growth y-o-y) and Electronics (95% y-o-y) segments. Operating profits significantly jumped by 91% y-o-y contributed by humongous revenue growth and a slight rise in margins. Consumer durables segment growth is led by channel filling. RAC segment grew 104%, while Non-RAC vertical grew by 68%.
Outlook
We maintain a Buy rating, factoring in the long-term revenue growth triggers across segments with a revised PT of Rs. 7,350 (based on 41x of FY2027E EPS) At CMP, the stock trades at a valuation of 81x/49x/36x its FY2025E/FY2026E/FY2027E EPS.
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