Buy Amber Enterprises: target of Rs 2623: Sharekhan

Sharekhan's research repor on Amber Enterprises

Strong performance from subsidiaries supports operational performance while RAC business is affected by high channel inventory. Management expects Q3 to be flattish while Q4 to be much better. The benefit from the recent ban on import of fully built refrigerant ACs to accrue from Feb-March 2021. Export of components to start from FY2022 and RACs from CY2022. To build 18-20 product portfolio in commercial refrigeration over 2-3 years. Strong order backlog for Sidwal.

Outlook

We recommend Buy on Amber Enterprises (Amber) with a PT of Rs. 2,623, given its strong net earnings growth outlook over FY2021E-FY2023E.

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