Electronic manufacturing services major Amber Enterprises‘ share price remained higher during Monday’s session, December 15, surging 3% to the day’s high of ₹6,820 apiece following the company’s recent interaction with analysts.
The company highlighted industry-leading growth in its air-conditioning segment and a significantly stronger growth outlook across other segments over the medium term.
Discussions primarily focused on the electronics division, where management reiterated a robust medium-term pipeline driven by organic expansion projects, including PCB manufacturing through Ascent Circuits and Korea Circuits, along with the ramp-up of recently acquired capacity.
The company also reaffirmed its strong FY26E revenue growth guidance of 40–45% at 8–9% margins for the electronics segment, led by organic growth in existing PCBA and PCB businesses, coupled with consolidation of recent acquisitions.
During the September quarter, Amber Enterprises announced a majority stake acquisition in Shogini Technoarts, a PCB manufacturer, for nearly ₹5 billion. Including Powerone and Unitronics, the company has invested close to ₹12.5 billion in acquisitions.
It has also received ECMS approval for ₹9.9 billion capex from Ascent Circuits for multi-layer PCB projects, while approval for the Korea Circuits JV is expected in a few days.
Motilal Oswal expects the electronics segment’s growth to be driven by the PCB and PCBA businesses, along with the consolidation of these acquisitions.
Meanwhile, the company expects the RAC industry to pick up during 2HFY26, with a likely rebound in 4Q, and projects 10–15% YoY growth from the segment. That said, management cautioned about headwinds from elevated copper prices, INR depreciation, and the shift to the new energy-rating regime from January 1, 2026, implying potential near-term margin softness.
Despite a weak performance so far in the railways segment, management remains confident of doubling revenue over the next two years, backed by a strong ₹26 billion order book and expected inflows of another ₹4–5 billion.
Motilal Oswal expects the railway segment growth to remain impacted during FY26, with a ramp-up expected from FY27. The brokerage retained its ‘Buy’ call on the stock but trimmed the target price slightly to ₹8,000 apiece from the earlier ₹8,400, citing near-term headwinds.
Nuvama Institutional Equities also maintained its Buy rating, with a target price of ₹9,100 apiece.
Amber Enterprises share price trend
After remaining on a sustained rally, the shares have come under pressure since September and have lost 16% in less than three months.
Nevertheless, the stock’s long-term trend looks impressive, trading 240% higher over the last three years and 190% higher over the last five years. From the 2023 lows of ₹1,805 apiece, the stock has delivered a phenomenal return of 276%.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
