Apr'25 View on Amber Enterprises India Ltd

Amber Enterprises India Ltd incorporated in 1956, has a 23.6% share in the total Room Air Conditioner market [1] and is a prominent solution provider for the Air conditioner OEM/ODM Industry in India. Summary • Q3FY25: strong performance in the consumer durable and electronics segments. • Channel inventory at all-time low, we expect growth momentum to sustain in Q4FY25. • Consumer durable: Market share gains and new product additions drive growth. • Electronics business will continue to outperform; becoming a complete EMS player. • We expect earnings per share (EPS) to grow by 73.4% in FY26E and 26.6% in FY27E. • We value the stock on DCF basis and our revised fair value is Rs7,720. Q3FY25 Earnings update: Positives: • Q3FY25 revenue was at Rs2,133 cr (up 65% yoy and 23% ahead of our estimates). • Strong performance in consumer durable (+67% yoy growth, led by 71% growth in ACs) and electronics (96% yoy growth) was the key highlight of Q3FY25. • Washing machine JV is progressing well; trials are in progress with a new customer. Negatives: • Mobility: Another weak quarter, revenue down 13% yoy /margins down 840 bps yoy. • Reported PAT was Rs35.8 cr (our estimate Rs38.9 cr); JV loss at Rs9 cr (+240% qoq).