Synopsis:
Amber Enterprises shares declined nearly 0.26% after PL Capital reiterated its ‘Buy’ rating and set its target price at Rs. 9,782, citing strong growth prospects from diversification, capacity expansion, and new market entries.
The leading company in the Room Air Conditioner market is in the spotlight during today’s trade after analysts assigned fresh target prices for the stock based on the company;’s future potential and diversified business.
With the market capitalization of Rs. 25,869.06 crore, the shares of Amber Enterprises India Ltd were trading at Rs. 7,625, down by 0.26 percent from its previous day’s close price of Rs. 7,645 per equity share.
What’s the news?
PL Capital has maintained its ‘Buy’ rating on the stock and set the target price at Rs. 9,782, with an upside of 28.29 percent from CMP of Rs. 7620. According to PL Capital, the stock will perform well in the long run due to its expansion beyond room air conditioners, increased capacity, and entry into new markets. It has provided a valuation framework for the company at 24x EV/Ebitda Sep-27E and 50x Sep-27E. Furthermore, it anticipates that the company’s revenue, EBITDA, and PAT will grow at a CAGR of 22.8 percent, 27.9 percent, and 49.6 percent, respectively, with the EBITDA margin expected to improve by 65 basis points to 8.3 percent in FY27.
Amber Enterprises is diversifying its consumer durables business beyond RACs through organic growth and acquisitions, including a JV with Resojet to enter fully automatic washing machines. This strategy aims to boost capacity utilisation, broaden the product mix, and raise non-RAC revenue share to 18.3 percent by FY27. With around Rs. 2,100 crore capex in FY21–25 to expand facilities and grow components and other products to 30–32 percent of the segment, the business is projected to deliver a 17.1 percent revenue CAGR over FY25–27 with Ebitda margins improving by ~80 bps.
PL Capital anticipates strong growth in the company’s electronics business, driven by backward integration, new products such as HDI and semiconductor substrates, and increased application diversification. With a Rs. 5,000 crore order book, the company plans to invest Rs. 650 crore in Ascent Circuits and Rs. 3,000 crore in electronics over the next five years. Margins are expected to rise from 7 percent in FY25 to 10-12 percent in 2-3 years, with the segment delivering a 41.2 percent revenue CAGR, 125-bp Ebitda margin expansion, and 53.3 percent Ebitda CAGR between FY25 and FY27E.
Amber Enterprises’ mobility segment is expected to grow at a 17.3 percent CAGR from FY25-27, driven by a Rs. 2,000 crore order book, product expansion, and the revival of projects such as Metro and Vande Bharat. The company aims to capture 28-30 percent of the bill-of-materials per railway coach and achieve 18 percent Ebitda margins, while greenfield expansions, joint ventures with Yujin and Titagarh, deeper rail subsystem integration, and defence export opportunities are expected to drive long-term growth.
About the Company
Amber Enterprises India Limited is a leading manufacturer of consumer durables and a key OEM/ODM solutions provider for the air conditioner industry in India. It designs and produces complete refrigeration and air conditioning systems, including window and split AC units, along with key functional components like heat exchangers, motors, condensers, sheet metal, copper tubing, and plastic parts. The company also makes components for other durables and automobiles, such as refrigerator liners, plastic sheets, and microwave sheet metal parts.
Mutual Fund Holding
As of June 2025, Mutual Fund Goldman Sachs Funds – Goldman Sachs India Equity P hold 1.73 percent stake in the company, consisting of ~5.86 Lakh equity shares. He made a fresh investment in December, 2023, by acquiring a 1.03 percent stake in the company.
Financial Outlook
In Q1FY26, the company posted revenue of Rs. 3,449 crore, up 43.7 percent YoY from Rs. 2,401 crore but down 8.1 percent QoQ from Rs. 3,754 crore, while net profit came in at Rs. 106 crore, rising 41.3 percent YoY from Rs. 75 crore but declining 10.2 percent QoQ from Rs. 118 crore, reflecting strong annual growth but a sequential moderation.
At the moment, the company’s P/E ratio is 94.1x higher as compared to its industry P/E 54.6x, and its ROE and ROCE are 11.3 percent and 14.5 percent, respectively, showing companies financial performance, whereas the D/E ratio of the company stands at 0.90.
Written by Akshay Sanghavi
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