BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Amber Enterprises India Ltd.'s Q2 FY22 sales grew 44% YoY to Rs 5.9 billion and gross margin stood flat YoY at 19.3%.
While sales were hit due to brand inventory, gross margin was flat due to its cost plus model with customers. This along with cost control, ensured a 50 basis points YoY Ebitda margin expansion at 5.8%
Amber Enterprises continues to be a good play on the localisation and production linked incentives theme, with opportunities in the AC component space, where total import content is still at 60%, which it can service as a local partner for brands.
Although we believe Amber is a good story on AC localization, we recommend entering the stock on dips.
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