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.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
