Amber Enterprises shares flat after order win; Ventura initiated with 33% upside target

Shares of Amber Enterprises India Ltd remained largely flat on Tuesday as the stock gave up early gains led by all-round selling pressure. The electronic equipment maker and its subsidiary has bagged 116 acres of land in Uttar Pradesh to build facilities.

The EMS major and its subsidiary has been allotted 116 acres of land by the Yamuna Expressway Industrial Development Authority (YEIDA) for the establishment of a new manufacturing facility at Sector 8, YEIDA, near Jewar Airport. The combined proposed investment for both facilities will be Rs 6,785 crore, which are likely to employ more than 3,000 people.

Amber is a leading manufacturer and solution provider for room air-conditioner (RAC) industry with a market share of 26-29 per cent. Its Electronic division (PCBA, Bare PCB and Box-Build) serves customers across consumer durables, smart electronics, automotive, telecom, healthcare, industrial and defence.

Meanwhile, Ventura Securities has initiated coverage on Amber Enterprises India, emphasising the company’s strategic integration into the Electronic Manufacturing Services (EMS) sector following the acquisition of three industrial EMS firms. These moves have expanded Amber’s scale, capabilities, and margin potential, providing a platform for future growth and a competitive edge in the EMS industry.

According to Ventura Securities, Amber Enterprises has earmarked INR 4,200 crore for capital expenditure under the ECMS programme, focusing on PCB and HDI manufacturing. This investment is anticipated to drive growth and improve margins over the next four to five years. The company’s order book, estimated at INR 20–26 billion, ensures strong revenue visibility within its Mobility division.

Shares of Amber Enterprises rose to Rs 6,147.75 on Tuesday but dropped nearly 1.5 per cent from day's high to Rs 6055.75, with a total market capitalization slipping below Rs 21,500 crore. The stock has tanked nearly 30 per cent from its 52-week high at Rs 8,625, hit on October 29, 2025.

Ventura expects Amber’s net revenue to increase at a CAGR of 18.2% from INR 9,973 crore in FY25 to INR 16,462 crore by FY28. EBITDA and net profit are also forecast to grow, at 20% and 8.5% CAGR respectively, reaching INR 1,319 crore and INR 311.2 crore by FY28. The report predicts an EBITDA margin improvement to 8%, attributed to EMS expansion.

The report notes that despite these positives, higher financing costs due to recent acquisitions have led to a projected net margin decline from 2.4% to 1.9% by FY28. Return on equity (ROE) is also expected to fall from 10.7% to 7.5% by FY28, driven by elevated debt, substantial capex, and reduced dividend yield. Ventura highlights that a potential fundraise or partial stake sale in Amber’s electronics business could help the company become net-debt free by FY27.

The Indian EMS market, supported by government Production Linked Incentive (PLI) schemes, is expected to grow at a 27% CAGR to INR 27.7 lakh crore by FY2028. Amber’s transition from a specialised air conditioning manufacturer to a diversified electronics player positions it favourably in this high-growth sector, as outlined in Ventura Securities’ analysis.

"We initiate coverage with a BUY for a price target of Rs 8,055 (91 times FY28E forward P/E) over the next 24 months," Ventura added, citing raw material price volatility, especially in copper and steel; competitive pressures from domestic and international players; and execution risks in expanding into new product segments as key risks.

Commenting on its Q3 expectations, Nuvama Institutional Equities expects healthy growth in consumer durables (prebuying by customers before the new BEE rating and cost inflation related price hike kicks in as well as consolidation of acquisitions should drive growth. It also expects Electronics margins to be under pressure.

"We expect 16 per cent YoY growth despite a weak second summer season on account of pre-buying by select customers. We estimate Amber's consumer durable business to grow by 5 per cent; this will be aided by 59 per cent YoY growth in electronics and 18 per cent growth in railways," said Kotak Institutional Equities.