11 AMBER share price target reports by brokerages below. See what is analyst's view on AMBER share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Outlook: Amber is well positioned to capture the opportunity of growth in RAC, components and mobile application given the cost effective manufacturing, backward integrated facilities & wide product offerings. Risks to our call: a) Disruption in supplies due to delay or congestion on ports; b) sluggish demand in the current uncertain environment caused mainly by COVID-19. We maintain a BUY with a target of Rs. 1,337.
In terms of valuation, the stock is trading at 24.5x and 19.6x FY20E and FY21E earnings respectively. AEL has outperformed the sector benchmark in YTDFY20E. The upside from current levels is modest. Hence, we move rating to “ADD” from “BUY” earlier. Notwithstanding this, our outlook on the room AC industry and contract manufacturing remains positive. We value the stock at 21x Consol EPS of FY20E. Ascribe price target of Rs 1218. (Rs 1152 earlier).
Growth in subsidiaries will aid revenue and bottom line growth going forward: Sidwal Refrigeration has on order book of Rs 480 cr (executable over 18-20 months) while its margins are in the range of 20%. Moreover, as brand substitute imports by local components (AC & Non AC components) we expect Amber to be a beneficiary of this shift, thus we expect subsidiaries ( PICL, IL JIN & EVER) to post strong revenues going forward. Industry growth rate & Management guidance: Management indicated that RAC industry has grown between 15- 17% (primary sales) during H1FY20, while it expects 15-18% growth for FY20. Management remains confident of surpassing industry growth rate by 4-5% for FY20. We recommend a BUY on Amber Enterprises with a revised TP of Rs 1,251.
In terms of valuation, the stock is trading at 21.9x and 17.7x FY20E and FY21Eearnings respectively. We see the company as a very good play on India’s fast- growing RAC industry. AEL enjoys one of the highest two year earnings CAGR among peer group. ROCE has been moderate due to capex in past years in building capacities, which are yet to be optimally utilized. With sustained demand trends, we see asset turnover to rise in coming years leading to enhanced ROE/ROCE. We value the stock at 21x Consol EPS of FY21E. Ascribe price target of Rs 1152. (Rs 1138 earlier).
In terms of valuation, the stock is trading at 18.0x and 15.5x FY20E and FY21E earnings respectively. We see the company as a very good play on India’s fast- growing RAC industry. AEL enjoys one of the highest two year earnings CAGR among peer group. ROCE has been moderate due to capex in past years in building capacities, which are yet to be optimally utilized. With sustained demand trends, we see asset turnover to rise in coming years leading to enhanced ROE/ROCE. We value the stock at 20x Consol EPS of FY21E. Ascribe price target of Rs 1058. (Unchanged).
AEL has showed strong growth aided by robust volumes, customer additions and increase in wallet share of existing customers by cross selling and offering new energy efficient models. The latest Acquisition of Sidwal Technologies, with confirmed order book of ~ Rs 185 cr (better margin profile), growth in subsidiaries with likely improvement in margins are expected to drive top-line as well as bottom-line going forward. We expect the company’s revenues/ bottom-line to grow at CAGR of 21%/34% between FY19-FY21E. We maintain a BUY on AEL with a target price of Rs 1076.
We expect Amber Ltd. to report net profit (reported) CAGR of ~27% to Rs152cr over FY2019-21E on the back of topline growth of ~20% in the same period. Considering the Pick-up in Ac demand and in synergies benefits from its new acquisitions, we maintain BUY on the stock with a revised target Price of Rs1,061.
We have revised our earnings to 45.8 (Rs 42 earlier) and Rs 52.9 (Rs 49 earlier) for FY20E and FY21E respectively. In terms of valuation, the stock is trading at 17.5x and 15.2x FY20E and FY21Eearnings respectively. We see the company as a very good play on India’s fast- growing RAC industry. AEL enjoys one of the highest two year earnings CAGR among peer group. ROCE has been moderate due to capex in past years in building capacities, which are yet to be optimally utilized. With sustained demand trends, we see asset turnover to rise in coming years leading to enhanced ROE/ROCE. We value the stock at 20x Consol EPS of FY21E. Ascribe price target of Rs 1058. (Rs 976 earlier).
We expect the company’s revenues/ bottom-line to grow at CAGR of 21%/34% between FY19-FY21E, while the PAT is expected to grow CAGR of 34% between FY19-FY21E. We reiterate BUY on Amber Enterprises India with a target price of Rs. 926
In terms of valuation, the stock is trading at 19.2x and 16.5x FY20E and FY21Eearnings respectively. We see the company as a very good play on India’s fast- growing RAC industry. ROCE has been moderate due to capex in past years in building capacities, which are yet to be optimally utilized. With sustained demand trends and modest capex, we see asset turnover to rise in coming years leading to enhanced ROE/ROCE. We value the stock at 20x Consol EPS of FY20E. Ascribe price target of Rs 976. (Unchanged).
AEL has showed strong growth aided by robust volumes, customer additions and increase in wallet share of existing customers by cross selling and offering new products. AELs acquisition of Sidwal is expected to enhance product offering, increase customer base and reduce seasonality of the business; acquisition to be revenue accretive from FY20E. Weexpect the company’s revenues/ bottom-line to grow at CAGR of 21%/34% between FY19- FY21E. We maintain a BUY on AEL with a target price of Rs 1076. We remain track consolidation of Sidwal and ramp–up of subsidiaries.
In terms of valuation, the stock is trading at 19.6x and 16.9x FY20E and FY21E earnings respectively. We see the company as a very good play on India’s fast- growing room AC’s (RAC) industry. AEL enjoys one of the highest two year earnings CAGR among peer group. With sustained demand trends and modest capex, we see asset turnover to rise in coming years leading to enhanced ROE/ROCE. We value the stock at 20x Consol EPS of FY20E (23x FY20E). Ascribe price target of Rs 976. (Rs 946 earlier).
We believe that Sidwal Refrigeration Industries Pvt Ltd (SRIPL) is a strategic fit in Amber’s portfolio, owing to 1) leadership position in railways (50% share) and metro, 2) supplier of choice for Defence where SRIPL has 80% share, 3) high entry barriers and long approval cycles, 4) diversification into Mobile Transportation Air Conditioning, HVAC etc which are the core business differentiators for Amber. We expect the acquisition to be EPS and RoCE accretive given asset light, debt light business of Sidwal Refrigeration. We have a Buy with a target price of Rs 932.
Amber Enterprises (AEL) hosted a conference call to discuss its latest acquisition, Sidwal Refrigeration Industries Private Limited (Sidwal). Key highlights: a) The acquisition provides exposure to high-growth mobile AC market (railways, metro, defence), wherein Sidwal leads with a market share of 50%-plus, and makes AEL a diversified player in the cooling products industry. b) The deal is both earnings/RoCE-accretive given Sidwal’s better margins (20%-plus each in FY18 and FY19), and the target boasts lower working capital intensity than AEL’s. In our view, at 10–11x FY19 PAT/5.75–6.5x FY19 EBITDA (implying a value of about INR2.4- 2.7bn), the deal offers comfort given better growth (33% in FY18) and returns (40%-plus FY18 ROCE). This would improve AEL’s post- consolidation EBITDA% by 80bps and lead to 12-15% jump in EPS in FY20. Maintain ‘BUY/SO’ with a target price of INR1,100 (24x June 2020E EPS).
In terms of valuation, the stock is trading at 26.6x and 18.6x FY19 and FY20 earnings (We have not incorporated the impact of the acquisition in the forecast numbers as we await acquisition cost details).We see the company as a good play on India’s fast-growing RAC industry. AEL enjoys the highest two year earnings cagr among peer group. ROCE has been moderate due to capex in past years in building capacities, which are yet to be optimally utilized. With sustained demand trends and modest capex, we see asset turnover to rise in coming years leading to enhanced ROE/ROCE. We value the stock at 23x Consol EPS of FY20E. Ascribe price target of Rs 946 (Unchanged).
We remain bullish on the niche space that Amber is in and its expansion plan in the related HVAC space. Q4FY2019 results will be keenly monitored for signs of growth as the last “cooler” summer season has spoiled its M9FY2019 results. We expect a CAGR of ~21%/38% in consolidated revenue/ earnings over FY2018-20E without taking this acquisition into account (would wait for deal’s fine prints). We maintain BUY with a target price of `910(25x FY2020E EPS).
We estimate Amber Enterprises to post topline CAGR of 15% and bottom-line CAGR of 38% over FY18-FY21E. We expect the company to report stable EBITDA Margins in the range of ~8-9.5% between FY18-FY21E due to operating efficiency and cost optimization ROE is estimated to increase to 14% over FY18-FY21E. We value Amber Enterprises at 18x FY21E EPS as we expect it to report Revenue/EBITDA/PAT CAGR of 15%/17.7%/38% respectively over FY18-21E and thus arrive at a price target of Rs. 954 (24% Upside).
We expect Amber Ltd. to report net profit (reported) CAGR of ~35.5% to ~Rs 114.4cr over FY2018-20E on the back of topline growth of 19.4% in the same period. Post the 3QFY19 numbers, we maintain BUY on the stock with a revised target Price of Rs 910 (25xFY20E).
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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