Jefferies has reiterated its ‘Buy’ rating on Amber Enterprises, setting a target price of ₹5,200. The report highlights strong growth drivers for the company, including a robust domestic air conditioning industry benefiting from a strong Q1 summer, projected to drive over 30% YoY volume growth in FY25e.
In the electronics segment, the imposition of Anti-Dumping Duty (ADD) on PCBs (up to 6 layers) has enabled Amber to onboard new customers. The mobility order book also remains strong, standing at ₹20.7 billion.
Between FY24-27e, Jefferies estimates margin-accretive components to achieve a CAGR of 26%, outpacing the 16% growth expected in air conditioning, thus expanding operating profit margins by 170 basis points. With peak capital expenditure likely behind, the report projects a rise in RoCE to around 20% by FY26e.
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