Amber Enterprises’ stock saw a sharp rise of 12.48%, reaching ₹4,890.00 as of 1:24 AM, following Jefferies’ reaffirmation of a ‘Buy’ rating with a target price of ₹5,200. The stock opened at ₹4,420.00, with a high of ₹4,898.95 and a low of ₹4,382.35, indicating significant trading activity.
Jefferies’ key takeaways from the India Forum 2024 highlighted strong growth prospects for the domestic AC industry, driven by a robust Q1 summer, with projected 30% YoY volume growth in FY25e. Amber is well-positioned to benefit from a 17% CAGR in the AC industry over the next seven years, supported by under-penetration and hot weather trends in India.
In the Electronics Vertical, the imposition of Anti-Dumping Duty (ADD) on PCBs enabled Amber to acquire new customers, with OPM expected to rise to 7-8%, compared to 4% two years ago. The company targets 45% growth, surpassing Jefferies’ estimates.
In the Mobility segment, Amber’s order book remains strong at ₹2,070 crore, with the company aiming to double sales over the next three years.
Jefferies expects Components division sales to grow at a 26% CAGR over FY24-27e, outpacing the 16% CAGR for the RAC segment, contributing to a projected 170bps OPM rise to 9% by FY27e. Jefferies maintains a PE multiple of 37x, in line with the company’s five-year average.
Amber’s long-term outlook appears promising, with strong growth potential across segments, making it a key player in the Indian AC and electronics markets.
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