Buy Amber Enterprises, target price Rs 1,830: Angel Broking

Angel Broking has a buy rating on Amber Enterprises with a target price of Rs 1,830, an upside of 71.5 per cent over the base CMP of Rs 1,067.05.

The company’s share price moved up by 8.57 per cent from its previous close of Rs 1141.65. The stock last traded at Rs 1239.50. Incorporated in 1990, Amber Enterprises India is a midcap company with a market cap of Rs 3588.36 crore, operating in the consumer durables sector.

Investment Rationale


The company is market leader in the room air conditioner (RAC) outsourced manufacturing space. It is a one-stop solutions provider for the major brands in the RAC industry and currently serves eight out of the 10 top RAC brands in India

Financials

Amber Enterprises's key products/revenue segments include Air Conditioners which contributed Rs 2133.84 crore to sales value (97.50 per cent of total sales); Other Operating Revenue which contributed Rs 34.40 crore to sales value (1.57 per cent of total sales); Scrap which contributed Rs 19.74 crore to sales value (0.90 per cent of total sales) and Job Work which contributed Rs .41 crore to sales value (0.01 per cent of total sales) for the year ending March 31, 2019.

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 788.43 crore, up 26.51 per cent from last quarter sales of Rs 623.24 crore and up 52.18 per cent from last year same quarter sales of Rs 518.10 crore. The company has reported net profit after tax of Rs 24.81 crore in the latest quarter.