The company has witnessed faster-than-expected recovery post easing of lockdowns and steady improvement in consumer sentiments. We have reduced revenue estimates for FY22E by 3.4% while marginally tweaking our FY23 estimates and value Amber at 40x FY23 EPS of Rs 83.3 arriving at a target of Rs 3,330
EBITDA margin in Q4FY21 increased ~110 bps YoY to 8.8% led by savings in employee & other costs. Price hikes to the tune of 10-12% in Q4FY21 and increased revenue contribution of CMA helped restrict gross margin fall to 80 bps YoY. The management guided for further price hike (of 2-3%) and continued cost savings measures to protect future EBITDA margin. We build in improvement in EBITDA margin from FY23 onwards (to 8.8% vs. 7.3% in...
We maintain a BUY rating on the stock and value it at 40x FY23E EPS of Rs 82.3 to arrive at the TP of Rs 3,290/share, implying an upside of 19%.
We have marginally tweaked our FY21E/FY22E/FY23E revenues estimates; we value Amber at 35x FY23E EPS of Rs 88.2 and arrive at the TP of Rs 3,085 (vs. Rs 2,800 earlier) Maintain BUY.
On the CMA business front, the component business recorded a strong recovery due to addition of new clients and strong demand of non AC component business (i.e. component for washing machines and refrigerators). However, business recovery in Sidwal was slightly delayed (sales recovery was 64% vs. ~97% recovery in overall consolidated sales) owing to slow execution of orders from railways and metros. However, the company sees a strong recovery in Sidwal (with order book of | 400 crore) going forward, with railways & metros starting operations post ease in...
We continue to remain positive on the long term growth outlook and maintain a BUY with a revised price target of Rs 2800 (vs. Rs 2586 earlier).
We have marginally tweaked our FY21E/FY22E/FY23E revenues estimates; we value Amber at 35x FY23E EPS of Rs 73.9 and arrive at the TP of Rs 2586 gives an upside of 18% from CMP.
Ambers component and mobility business revenue recovery was faster at ~84% of pre-Covid level YoY. The recovery was largely led by strong demand of non-AC components due to strong pent up demand of consumer appliances. The RAC segment business recovery was delayed to lower volume offtake by key customers as their major focus remained on liquidation of dealer level inventory. As channel inventory reached normal...
Amber reported an in-line set of numbers in Q2FY21, the fall in revenues was higher than the fall in the end RAC market as the inventory in the channel was higher than normal but has eased a bit.
We maintain a positive outlook on business prospects in the medium to long term. We have increased our FY22E/FY23E revenues estimates by 1.5%/2.1% & PAT by 2%/4.7% respectively. Given the sharp run in price in past few sessions, the TP of Rs 2584 gives an upside of 5% as we value Amber at 35x FY23E
Consolidated revenue fell ~79% YoY mainly led by 81% and ~74% YoY fall in RAC and components and mobility business, respectively. RAC volume offtake declined ~81% YoY at ~2 lakh units during Q1FY21 mainly due to lockdown. However, retail demand for air conditioners improved in May & June 2020, especially from Tier 2 & Tier 3 cities. We believe RAC sales volume will recover from H2FY21 with ease in lockdown restrictions and...
Amber reported strong RAC volume growth of ~43% YoY in FY20 led by customer addition, increase in wallet share from existing clients. Alongside, component, mobile business also posted strong 51% YoY growth supported by consolidation of Sidwal in FY20. While the company is confident of achieving scale (due to its market leadership position, changing strategy of customers to increase local sourcing) post Covid-19, we believe...
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