Amber Enterprises India Sees Target Price of Rs 8396: Prabhudas Lilladher Recommendation

Amber Enterprises India Sees Robust Growth in Consumer Durables Segment

Amber Enterprises India reported a ~7% year-over-year (YoY) growth in its Consumer Durables (CD) segment for the fourth quarter of FY26. The company's management expects the Refrigeration Air Conditioning (RAC) industry to grow ~13-14% in FY27, with Amber likely to grow broadly in line with industry trends. This growth is expected to be driven by cumulative RAC price hikes of ~14% YoY, resulting from commodity inflation and regulatory changes.

Key Segments to Drive Growth

The company's Electronics division is expected to deliver ~40% revenue growth in FY27, with earnings before interest, tax, depreciation, and amortization (EBITDA) margins of ~9.5-10%. The Railways division is expected to deliver ~30-35% revenue growth with margins of ~16-17% in FY27, backed by a robust order book of ~INR26bn. The company's revised earnings estimates reflect the consolidation impact of Unitronics Israel, in which Amber has increased its stake to 50.4%, strengthening its industrial automation business.

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Revised Earnings Estimates and Rating

We have maintained our 'BUY' rating and SOTP-based target price (TP) of Rs8,396, valuing Amber's Consumer Durables segment at 23x EV/EBITDA Mar'28. This implies 20x EV/EBITDA Mar'28E and 44x Mar'28E earnings on a consolidated basis.

Outlook and Estimates

We estimate revenue/EBITDA/PAT compound annual growth rate (CAGR) of 22.5%/29.3%/75.4% over FY26-28E, with EBITDA margin expanding by ~90bps to reach 8.7% by FY28E.

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