Amber Enterprises Q2 Results Review - Promising Growth Outlook: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Amber Enterprises India Pvt. Ltd.’s room AC and component division grew ~40% YoY in Q2 FY24 as rising temperatures and ongoing festival season helped in liquidation of majority of the inventory. While mobility saw good 26% growth, muted growth in motors (+4%)/electronics (+3%) division was a negative surprise.Diversification to non- rrom AC businesses resulted in better product mix and aided Ebitda margin expansion of 150 basis points to 6.4%, cushioning the impact of soft room AC demand in lean season.In FY24, volume growth in rrom AC industry is expected to be flattish or in single digits. Amber is confident of doubling revenue of electronics and mobility division by FY26 with addition of new customers and new products. We have cut our FY24/25E by 8.5/5.7% to Rs 61/89 respectively to factor in Q2 performance, and introduced FY26E earnings per share at Rs 116. We expect revenue/profit after tax compound annual growth rate of 17/35% over FY23-26E. Maintain 'Accumulate' with a revised target price of Rs 3,223 (28 times FY26E EPS)..Click on the attachment to read the full report:.Amber Enterprises Q2 Results Review - Electronics, Mobility The Future Growth Levers: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Amber Enterprises Q2 Results Review - Promising Growth Outlook: Dolat Capital

Plans to double mobility and electronics division.

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