Amber Enterprises India Limited: Value Pick Stock February 2020, Update
Update:
Q3 Results FY 2021
Amber Enterprises has come out with its Q3 FY 2021 numbers today –
Revenue:
INR 584.44 Cr for the period ended 31 December 2020 as against INR 569.58 Cr a year ago, up 2.56% Y-O-Y basis,
Income from operations for the quarter ended 30 September 2020 stood at INR 222.35 Cr, up by 162.85% Q-O-Q basis,
PAT:
INR 18.26 Cr for the period ended 31 DEC 2020 as compared to INR 11.53 Cr for the period ended 31 DEC 2019, up by 58.36% y-o-y basis,
The Company reported a loss of INR 8.60 Cr for the period ended 30 September 2020,
FINBLAB continues to be bullish on Amber and recommending to accumulate it on every decline.
31 MAY 2020
Update:
Q4 Results FY ’20
A prominent solution provider for the Air conditioner Industry (RAC) in India “Amber Enterprises Limited” on Saturday reported a consolidated net profit of INR 62.82 Cr for the 4th quarter ended March 2020.
The company had reported a net profit of INR 66.83 Cr in the January-March quarter a year ago, Amber Enterprises said in a BSE filing.
The Company’s revenue from operations stood at INR 1315.18 Cr during the quarter. It was INR 1196.01 Cr in the corresponding quarter of the previous financial year.
Its total expenses were at IMR 1245 Cr during the fourth quarter of 2019-20 as against INR 1107.5 Cr in the January-March quarter a year ago.
For the financial year 2019-20, Amber Enterprises net profit was up 73.20% to INR 164.14 Cr. It was INR 94.77 Cr in the previous year.
In 2019-20, its revenue from operations was INR 3970.95 Cr. It was INR 2751.99 Cr in 2018-19.
Keeping the current pandemic in mind, the company said, We believe there will be an impact in revenue and profitability for Q1FY21 as our operations were shut in April 2020 and were gradually started in May 2020. The demand for Air Conditioners in the retail & E-Comm markets has also been disrupted on account of Covid-19 and therefore demand from our customers has been impacted as well.
However, the Company is confident about adapting to the changing business environment and respond suitably to fulfil the needs of its customers.
Further, the management said, our strong business model spread across multiple customers and increased penetration in the HVAC industry is expected to withstand the weak demand outlook in the short term.
Amber Enterprises shares on Friday settled at INR 1245.85 on the NSE, up 0.41% from the previous close with 180351 shares have been traded.
FINBLAB continues to be bullish on the stock and recommending to accumulate it on every decline.
3 February, 2020
Amber Enterprises India Limited is a market leader in Room Air Conditioner (RAC) original equipment manufacturer (OEM) / original design manufacturer (ODM) industry in India.
The company is a “One-Stop-Shop for Air Conditioners and Its Components for Consumers”
Amber Enterprises: History
Started in the year 1990, Amber Enterprises is a Punjab based manufacturer of air conditioners and its component in India.
With the market share of more than 55 percent, Amber Enterprises India Limited is a prominent solution provider for the Air conditioner OEM/ODM Industry in India.
Amber Enterprises: Business Portfolio
- RACs: The Company design and manufacture complete RACs including window air conditioners and indoor units and outdoor units of split air conditioners with specifications ranging from 0.75 ton to 2 tons, across energy ratings and types of refrigerant. The Company design and manufacture Inverter RACs too.
- RAC Components: Amber manufacture reliable functional components of RACs that includes heat exchangers, motors and multi-flow condensers with other Components such as sheet metal components, copper tubing and including plastic extrusion, vacuum forming and injection molding processes too.
- Non AC Components: The Company manufacture components other durables and automobiles such as case liners for refrigerator, plastic extrusion sheets, sheet metal components for microwave, washing machine tub assemblies with other sheet metal and plastic injection molding and extrusion components for automobiles and metal ceiling industries.
- Mobile Air Conditioners: Under the mobile air conditioners segment, the company work for Railway Air Conditioners, Metro Air Conditioners, Bus Air Conditioners, and work for defence & telecommunications.
Amber Enterprises: Working Area
Amber Enterprises has a leading presence in RACs complete unit and deals in major Room Air Conditioner (RAC) components with 10 manufacturing facilities across India focusing on different product segments.
With expertise in components like heat exchangers, sheet metal components, injection molding components, and system tubing and motors, Amber Enterprises is strongly positioned with its backward integration to derive the core deliverable in terms of quality, cost & delivery.
The Company offers higher energy efficiency and expertise in indoor, outdoor, split and window AC units.
Client List:
Amber Enterprises’ client list includes Blue Star, Career, Daikin, Hitachi, John Deere, LG, Mahindra, Godrej, SML Isuzu, etc…
Listed On:
The shares of Amber Enterprises India Limited are presently listed at Bombay Stock Exchange (BSE); CODE 540902 and National Stock Exchange (NSE) as AMBER
Stock Info: Amber Enterprises
Share Holding Pattern
Financials: Amber Enterprises
Conclusion
Amber Enterprises is a prominent solution provider for the Air conditioner OEM/ODM Industry in India.
The Company is becoming a prime demand aggregator for leading OEMs (Blue Star, LG, Panasonic, Voltas, and the Q2 FY20-added Samsung), and it continues its dominance in room-ACs in India.
Robust order inflows are expected from Sidwal (the company’s recent acquisition), and growth potential in the Railways and metro-rail categories. Amber will also benefit from the government’s continued focus on the ‘Make in India’ campaign.
Promoters of the company are having more than 44% stake with 0% pledge shares.
Along with this, some of the top institutions like Aadi Financial Advisors LLP, ALTERNATIVE INVESTMENT FUND, ASCENT INVESTMENT HOLDINGS PTE LTD, DSP SMALL CAP FUND, EDELWEISS ALTERNATIVE INVESTMENT OPPORTUNITIES TRU, GOLDMAN SACHS INDIA LIMITED, ICICI PRUDENTIAL SMALLCAP FUND, KOTAK FUNDS – INDIA MIDCAP FUND, and Akash Bhanshali is having more than 1% stake in the company.
On the technical front, Amber Enterprises share is trading well above its 50 EMA (1304) and 200 EMA (1039) on the daily chart.
Keeping the above-listed factors in mind, Amber Enterprises India Limited looks good at INR 1535. Finblab recommends investing in the stock in a staggered manner for medium to long term.
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