Amber Enterprises Shares Surge 3% on Positive Growth Outlook
On Monday, December 15, Amber Enterprises' share price rose by 3% to a high of ₹6,820 per share, driven by the company's interaction with analysts and a strong growth outlook in its electronics segment.
Electronics Segment to Drive Growth
The company highlighted its industry-leading growth in the air-conditioning segment and a robust medium-term pipeline in the electronics division. The management reiterated a strong growth outlook, driven by organic expansion projects, including PCB manufacturing through Ascent Circuits and Korea Circuits, as well as the ramp-up of recently acquired capacity.
Revenue Growth Guidance
Amber Enterprises reaffirmed its revenue growth guidance of 40-45% at 8-9% margins for the electronics segment in FY26. This growth is expected to be driven by organic growth in existing PCBA and PCB businesses, coupled with the consolidation of recent acquisitions, including the majority stake acquisition in Shogini Technoarts, a PCB manufacturer.
Recent Developments and Outlook
The company has received ECMS approval for ₹9.9 billion capex from Ascent Circuits for multi-layer PCB projects. Additionally, approval for the Korea Circuits JV is expected in a few days. Despite headwinds from elevated copper prices and INR depreciation, the company remains confident about its growth prospects.
RAC Industry and Railway Segment
The company expects the RAC industry to pick up during the second half of FY26, with a likely rebound in the fourth quarter, and projects 10-15% year-over-year growth from the segment. However, the railway segment is expected to remain impacted during FY26, with a ramp-up expected from FY27.
Brokerage Views and Target Prices
Motilal Oswal expects the electronics segment's growth to be driven by the PCB and PCBA businesses, along with the consolidation of these acquisitions. The brokerage has retained its 'Buy' call on the stock but trimmed the target price slightly to ₹8,000 per share. Nuvama Institutional Equities has also maintained its Buy rating, with a target price of ₹9,100 per share.
Share Price Trend
After a sustained rally, Amber Enterprises' shares have come under pressure since September, losing 16% in less than three months. However, the stock's long-term trend looks impressive, trading 240% higher over the last three years and 190% higher over the last five years.
Investors are advised to check with certified experts before making any investment decisions, as the views and recommendations made above are those of individual analysts or broking companies.
Key Takeaways:
- Amber Enterprises' share price surged 3% on a strong growth outlook in the electronics segment.
- The company reaffirmed its revenue growth guidance of 40-45% at 8-9% margins for the electronics segment in FY26.
- The RAC industry is expected to pick up during the second half of FY26, with a likely rebound in the fourth quarter.
- Brokerages have maintained their Buy ratings, with target prices of ₹8,000 and ₹9,100 per share.