Amber Enterprises: Confluence of tailwinds underpins the long-term bull case

Trading Calls - Equity F&O

Amber’s growth prospects are supported by structural growth drivers such as changing consumer lifestyles and the low penetration of ACs.

Amber Enterprises: Confluence of tailwinds underpins the long-term bull case

PRO Only Highlights
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Quarterly performance largely backed by improved realisations
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Medium-term triggers China plus and protectionist measures for tyre industry
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Valuations not inexpensive; but improved medium-term outlook

The air conditioner (AC) industry has been one of the worst-hit sectors due to the pandemic. The nationwide lockdown resulted in a near washout of sales in 2020. The onset of the second wave during the peak summer season had added to the sector’s woes in 2021. While the second-quarter results of Amber Enterprises reflect broad-based improvement in operating metrics following an uptick in consumer sentiment, the business still hasn’t returned to the pre-COVID run-rate. Quarterly result highlights As lockdown restrictions were relaxed…