Anand Rathi initiates buy on Amber Enterprises, target price Rs 1,248

Anand Rathi has initiated coverage on Amber Enterprises India in the long term with a buy rating and target price of Rs 1,248. The stock ended down 0.19% at Rs 904.90 on Tuesday while the BSE Sensex closed 361.92 down at 38,305.41. The equity market was closed on Tuesday on account of Gandhi Jayanti.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 1235.94 crore, up 3.34 % from last quarter sales of Rs 1196.01 crore and up 74.55 % from last year same quarter sales of Rs 708.07 crore. The company has reported net profit after tax of Rs 64.33 Crore in latest quarter.


Investment Rationale

Amber is one of the few contract manufacturers of air-conditioners in India who would be benefiting from the robust demand as the country is set to remain the fastestgrowing market in the world during 2016-2030, said Anand Rathi. With major OEMs as customers, Amber is set to benefit from a quantum leap as the AC sector is expected to register a 17% CAGR between 2016 and 2030, the brokerage said.