Motilal Oswal Bullish on Amber Enterprises: HUGE Target Price Revealed! What Investors Need to Know NOW!

Motilal Oswal's latest research report maintains a BUY recommendation for Amber Enterprises, setting a revised target price of INR 8,400 per share, down from INR 9,000 previously. The brokerage firm has also reduced its Profit After Tax (PAT) estimates by 19% for FY26, 10% for FY27, and 11% for FY28. This adjustment factors in the company's weaker performance in the second quarter of fiscal year 2026 (2QFY26) and a recent fund raise of INR 10 billion.

The weakness in 2QFY26 was primarily attributed to the consumer durable segment, which experienced reduced demand and delayed purchases following the implementation of GST 2.0. Despite these challenges, Amber Enterprises managed to outperform the Room Air Conditioner (RAC) industry, reporting a decline of 18% year-on-year (YoY) compared to the industry's 30-33% YoY decline. The electronics division was also affected by the slowdown in consumer durables.

Motilal Oswal anticipates a revival in demand during the second half of fiscal year 2026 (2HFY26). They expect the company to continue outperforming the RAC industry for the full fiscal year FY26. The electronics division's performance is projected to be boosted by growth in the Printed Circuit Board Assembly (PCBA) and Printed Circuit Board (PCB) segments, along with contributions from recent acquisitions like Powerone and Unitronics. Delays in commissioning the Ascent facility are noted, but the upcoming capacity in a joint venture with Korea Circuit, expected from FY28, is seen as a significant future growth driver. However, the railway segment is predicted to remain subdued in the near term.

Heading "Impact" This report suggests potential upside for Amber Enterprises' stock, as the BUY rating and target price indicate positive investor sentiment despite short-term headwinds. The outperformance against industry peers and strategic growth initiatives are key factors supporting this view. Rating: 7/10

Difficult terms: * FY26: Fiscal Year 2026, which runs from April 1, 2025, to March 31, 2026. * YoY: Year-on-Year, a comparison of a period with the same period in the previous year. * RAC: Room Air Conditioner. * GST 2.0: Likely refers to a revised or second phase of Goods and Services Tax implementation or changes that impacted businesses. * PCBA: Printed Circuit Board Assembly, which involves mounting electronic components onto a printed circuit board. * PCB: Printed Circuit Board, the base on which electronic components are mounted. * PAT: Profit After Tax, the profit remaining after all taxes have been deducted.