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.

Amber's 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.

The prohibition of imports of RAC with refrigerant is a major positive for domestic manufacturers.

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 a wash-out Q1FY21 quarter, which was significantly below expectations as revenue fell by 79% to INR 259cr.

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...

Amber reported decent Q4FY20 result, however slightly below expectations

The March to June period has traditionally been a strong season for RAC's and cooling products. The continued lockdown situation has resulted in production loss and demand destruction due to absence of retail sales.

Amber Enterprises is a leading solution provider for Air conditioner OEM/ODM Industry in India. It caters to 8 out of top 10 AC brands AC brands in India which together have 75%+ market share in India. Amber also manufactures AC/NON AC components in its endeavour to be a total solutions provider.

Amber Enterprises India Ltd (Amber) reported strong Q3FY20 results (Revenue/EBITDA beat estimate by 15.7%/48.3%)

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Amber Consolidated Revenue grew by 89% in Q2FY20 to Rs. 623 cr vs. Rs. 330 cr in Q2FY19, aided by 127% volume growth in RACs and 46% revenue growth in RAC components. The EBITDA grew by 2.6x to Rs 37 cr vs. Rs 14 cr in Q2FY19, while EBIDA margins stood at 5.9% up 180 bps.

Amber reported strong Q2FY20 results due to higher-than-estimated RAC sales volumes.

Amber continues to remain confident of growing at least 4-5% faster than industry and achieve margin expansion of 50-100bps given 1) new client additions and increasing wallet share amongst existing clients 2) rising demand for local sourcing due to import duty hike 3) benefits of scale in high...