Amber Enterprises India Ltd. share price target

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...

Amber Consolidated Revenue grew by 75% in Q1FY20 to Rs. 1,236 cr vs. Rs. 708 cr in Q1FY19, aided by 89% volume growth in RACs and 43% revenue growth in RAC components. The EBITDA grew by 85% to Rs 116 cr vs. Rs 63 cr in Q1FY19, while EBIDA margins stood at 9.4% up 51bps.

Amber reported strong Q1FY20 results (Revenue/EBITDA/PAT beats estimate by 29%/28%/32% on standalone basis) due to higher-than-estimated RAC sales volumes (clocked 89% growth vs 40% estimate).

Amber reported yet another quarter of stellar RAC volume growth (+89% yoy), led by harsh summers resulting in increased business from existing customers, as well as new client additions. Revenue and EBITDA beat was 40% and 37%, respectively. Gross margin contraction was unexpected, while it is attributed to product mix being Management remained upbeat on strong RAC volume growth in FY20 as industry inventory levels are at lower levels due to strong sales recorded in Q1. The integration of Sidwal has been done and it is progressing well to achieve the targeted synergies. Given robust Q1 volumes, we raise RAC volume growth assumption to 30% from 15%...