Fundamental Analysis

AMBER ENTERPRISES INDIA 

Ticker : 540902  
BUY : Rs 1683.95
Target : Rs 1860

Amber Enterprises India Limited manufactures heating and ventilation equipment. On the consolidated quarterly front, the net sales fell by 79.01 per cent to Rs 259.45 crore in Q1FY21 from Rs 1,235.94 crore in Q1FY20. The company reported an operating loss of Rs 2.48 crore in Q1FY21 as against a profit of Rs 122.52 crore in Q1FY20. A net loss of Rs 23.92 crore was reported in Q1FY21 as against a net profit of Rs 64.33 crore in Q1FY20. Despite a disappointing quarter, there are sectoral tailwinds for the company, which are led by the recently announced action of Government of India (GOI) related to the phased manufacturing plan. It is a probable extension of the production linked incentive (PLI) scheme to the room air-conditioning (RAC) manufacturers along with the continued traction of China+1 phenomenon, which the firm is experiencing, led by higher inquiries from international companies. These factors are likely to enable a strong recovery. We thus, recommend a BUY.