Amber Enterprises: Should you buy the stock after Q2 earnings? Here's what brokerages say
Amber Enterprises following the company's September quarter results. In Q2 FY24, the consumer durable firm reported a net loss of ₹4 crore. This loss was primarily attributed to a significant increase in depreciation cost by 42% year-on-year (YoY) and a 50% YoY surge in finance cost.
During the quarter, the company's consumer durables business improved 35% YoY to ₹550 crore, while electronics and mobility revenue grew by 3% and 26% to ₹250 and 130 crore, respectively. Welspun Living shares rise 107% in seven months; is there more upside left? Domestic brokerage firm Sharekhan maintained its positive outlook on Amber Enterprises after its Q2 earnings. The brokerage emphasised that despite the structural change in the RAC (Refrigeration and Air Condition) industry, wherein brands are resorting to in-house manufacturing of finished goods, Amber is well-positioned to capture incremental demand accruing from components ecosystem development.
Sharekhan pointed out that while Amber's share of RAC finished goods is decreasing, the company is concentrating on RAC and non-RAC components to drive growth and profitability. Moreover, in the long term, under-penetration of RAC, rising temperatures in India, changing lifestyle patterns, and increasing contribution from Tier II, III, and IV cities would drive the RAC industry’s growth and benefit Amber indirectly, the brokerage highlighted. Sharekhan has projected a revenue and PAT CAGR of approximately 17% and 37% over FY2023 to FY2026E, respectively.
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