Geojit Investments has initiated coverage on Amber Enterprises India Ltd with a BUY recommendation and a target price of ₹9,156, implying an upside potential of around 20% from current levels.
Amber Enterprises is India’s largest original equipment manufacturer and original design manufacturer (OEM/ODM) of room air conditioners (RACs), commanding around 27% share of the domestic RAC manufacturing market.
The brokerage expects the Indian RAC industry to grow at a 19% compound annual growth rate over FY26E–FY28E, driven by rising consumption and low penetration levels of just 8%, compared with roughly 40% globally.
Beyond RACs and heating, ventilation and air conditioning (HVAC) components, Amber has diversified into electronics manufacturing services (EMS), including printed circuit boards (PCB) and printed circuit board assemblies (PCBA), as well as railway and defence subsystems.
Geojit expects Amber’s overall revenue to grow at a 27% CAGR over FY26E–FY28E. The consumer durable segment, which contributed 73% of FY25 revenue, is projected to grow at 22% CAGR, while the electronics segment could expand at 30% CAGR, aided by capacity expansion under the Production Linked Incentive (PLI) scheme involving a planned ₹4,200 crore investment.
Also Read: Amber Enterprises Q3 revenue, EBITDA beat estimates; PAT turns loss
The brokerage believes market share gains in RACs and expansion in higher-margin PCB businesses could improve earnings visibility and margins going ahead.
Shares of the company closed at ₹7,750.00, up 1.3% on the NSE on Monday, February 23.
