Jefferies has reaffirmed a Buy rating on Amber Enterprises’ stock, setting a target price of ₹8,845, implying a 52% upside from the current market price (CMP) of ₹5,812. The brokerage remains optimistic about the company’s strong positioning in the AC and electronics segments.
Key takeaways from Jefferies’ report:
- Domestic AC industry expected to grow 30% YoY, driven by a strong summer demand in Q1 and channel restocking in Q2 and Q3.
- Electronics business gains momentum as the imposition of anti-dumping duty on PCBs attracts new customers.
- Mobile segment growth impacted due to order delays, though a recovery is expected over the medium term.
- FY24-27 margin accretive components CAGR expected at 35%, significantly outpacing the AC segment’s 22% CAGR.
- RoCE expected to rise notably post normalized capex, improving overall return metrics.
Amber Enterprises is well-positioned to benefit from the booming AC market and expansion into high-margin electronics components, making it an attractive investment, according to Jefferies.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research before making any investment decisions.
