BNP Paribas Analyzes Amber Enterprises India

BNP Paribas, a large investment firm, believes Amber Enterprises India is a good stock to watch. They’ve kept their “Outperform” rating on the company and think it’s a smart choice compared to other companies that make electronics. Amber makes parts for things like TVs, phones, and computers.

Key Points

• BNP Paribas recommends Amber Enterprises India (Outperform rating).
• Amber expects 13-15% CD sales growth by 2026.
• Near-term margins will be pressured by rising costs.
• $1 billion revenue goal by 2029 is achievable.
• Acquisition of Shogini strengthens PCB capabilities.
• EPS estimates reduced; target price lowered by 2%.

Amber is planning to sell about $1 billion worth of electronics by 2029. This means they want to sell a lot of parts and products to make a big profit. They believe they can do this because they already have a strong order book, which is a list of customers who have ordered their products.

However, Amber is a little worried about costs going up. Prices for materials like copper are getting more expensive, which could make it harder for them to make money. They expect this problem to get better in the next three months.

Recently, Amber bought a big piece of another company called Shogini. Shogini makes similar parts, but they work with a wider variety of customers than Amber does. This will help Amber grow and offer more options to its clients.

Amber is building a new factory that will cost around $650 million. They expect it to be finished by the end of 2027. They are also working on a joint venture with a company in Korea to make even more specialized parts. They hope to start selling products from this joint venture in 2028.

Amber wants to make a profit of about 8-9% on its products. They also plan to spend a lot of money building new factories and buying materials. Because of these plans and potential cost increases, BNP Paribas has slightly lowered its predictions for how much money Amber will make in the future. As a result, they’ve changed their target price for the stock.

“Smart investments require careful assessment of both opportunity and risk.”