Brokers Call: Amber Enterprises (Buy)
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Updated on
CMP: ₹2,342.10
Amber is set to emerge as the primary beneficiary of the government’s steps on air-conditioner imports. The industry estimates approximately 2.7 million units are imported, of which about 70 per cent are filled with refrigerants. After the notification, Amber added four OEM clients and is adding a few more.
The full benefits of an expanding client list will be visible in FY22. With its two new factories expected to be commissioned by FY22, Amber can benefit from further policy support in the form of production-linked incentives (PLI) for components.
The room AC industry in 2020 was characterised by chaos and uncertainty with regard to availability of critical components sourced from China and higher international logistics cost due to Covid-19. The situation is now turning normal and we expect re-stocking to be strong in Q4, for next year’s summer.