Amber Enterprises - Electronics, Mobility Are The Future Growth Levers: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We hosted the management of Amber Enterprises India Pvt. Ltd. for our conference. His commentary was quite bullish on the room AC space, with expectations of RAC industry doubling in size in the next four years.  Currently, the RAC inventory in the channel is normal. In FY25, the management expects the RAC industry to grow by ~30%. Within consumer durables, RAC and RAC Components contribute ~70% to the topline. Currently, the split of RAC:RAC Components is at ~50:50. Amber is currently capable of catering to ~70% of the BOM cost in RAC. Electronics is expected to grow by ~45% in FY25, with Ebitda margin at ~7.5- 8%. However, most of this will be volume driven due to ASP compression in hearables and wearables by ~40%. The order book for SIDWAL stands at ~Rs 21 billion, with order execution expected over the next three years. The management expects revenue to double in the next three years. We maintain Accumulate with a target price of Rs 4,300. This implies a PE of 40 times on June’26E EPS - ~35% discount to the five-year historical average PE on 1-year forward basis. While contribution from high-margin businesses (RAC and non-RAC components), expansion of product portfolio under PCBA & PCB and diversification into various electronic applications under mobility are all positives, scaling up of revenue share and making meaningful contribution to overall margins is still a couple of years away..Click on the attachment to read the full report:.Ecos India Mobility IPO - Investment Rationale, Issue Details, Financials, Risks And More: Anand Rathi.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Amber Enterprises - Electronics, Mobility Are The Future Growth Levers: Nirmal Bang

The order book for SIDWAL stands at ~Rs 21 billion, with order execution expected over the next three years and the management expects revenue to double in the next three years, says the brokerage.

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Amber Enterprises - Electronics, Mobility Are The Future Growth Levers: Nirmal Bang

The order book for SIDWAL stands at ~Rs 21 billion, with order execution expected over the next three years and the management expects revenue to double in the next three years, says the brokerage.

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