This Room Air Conditioner stock, which deals in the business of manufacturing air conditioners, non-air conditioner components, and one-stop solutions for the RAC industry, is in focus after it plans to double its revenue guidance in the next three years.
Share Price Movement
In Thursday’s trading session, Amber Enterprises India’s share price was up by 6.58 percent and was trading at Rs. 7,309 per share from the previous close of Rs. 6,857.70 per share.
In the past year, the stock has given around 127 percent returns, and compared to the Nifty Index, Amber Enterprises India has outperformed.
Future Plans
The company aims to double its revenue in the next three years. It plans to scale its Consumer Durable division by increasing room air conditioner (RAC) and non-RAC verticals, and expects mass production of washing machines by H1 FY26. The capex for Consumer Durables is around Rs. 250 crore to bring new model lineups, and also increasing on the component side.
In Electronics, it revised revenue growth guidance from 45 to 55 percent for FY25, which is driven by PCBA and bare board verticals. A new facility at Hosur will start production by Q4FY26. The company’s joint venture (JV) with Korea Circuit will introduce high-density interconnect (HDI), flex, and semiconductor substrates in India. The Hosur Facility is Rs. 650 crore.
In Railway & Defense, despite a 13 percent decline in Q3FY25, it expects normalization by H2FY26. The Sidwal greenfield facility and JV with Yujin Machinery will be operational by FY26. The capex is around Rs. 350 crore out of which Rs. 100 crore is spent in the current year and the remaining Rs. 150 crore is for the upcoming year.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 64.71 percent rise in revenue, reaching Rs. 2,133 crore compared to Rs. 1,295 crore in Q3FY24. During the same period, net profit turned from a net loss of Rs. 1 crore in Q3FY24 to a profit of Rs. 37 crore in Q3FY25.
Business Segments
The company earned its operational revenue around 73.03 percent from Consumer Durables Division, 22.76 percent from Electronics Division, and the remaining 4.21 percent from Railway Sub-system and Defence Division as of December 2024.
They have higher Operating margins from Railway Sub-systems, followed by Electronics Division, and Consumer Durables.
Company Profile
Amber Enterprises India Limited is a leading OEM/ODM for room air conditioners, with a strong presence in consumer durables and electronics. It operates 23 facilities across India, serving major brands like LG and Daikin. The order book stood at more than Rs. 2,000 crore in the Railway Sub system segment.
Written by – Santhosh S
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