Amber Enterprises India Ltd. share price target

Amber guiding for EBITDA CAGR of 25-30% in medium term is the highlight of the Q2FY23 result.

Q2 topline meets estimates but bottomline disappoints with net loss of Rs 30mn owing to higher finance/forex cost

We recommend a BUY on the stock with a target price of Rs 2,504/share, implying an upside of 10% from CMP.

Continued margin pressure in RAC business

While we have reduced the margins by -10%/-4.8% for FY23E/FY24E to factor in a gradual recovery. We value Amber at 38x FY24E EPS of Rs 81 and arrive at the TP of Rs 3,000/share (vs. 3,600/share earlier) and change our stance to BUY.

Amber enterprises (Amber) guiding for RoCE range of 17-20% in next 2-3 years is the key highlight of the Q1FY23 result.

Q1 EBITDA margin down 100bps QoQ to 5.4% and adj. PAT below estimates at Rs 429mn

We believe, Amber, the market leader in RAC manufacturing in India (26.6% value market share in FY22, according to company data) will grow at a faster rate than the industry to consolidate its leadership position. To aid volume growth and stick to the commitment of PLI schemes, the company is on track to expand its capacities.