Add Amber Enterprises India Ltd for the Target Rs.8,150 by JM Financial Services Ltd.
Amber Enterprises, through its subsidiary ILJIN Electronics has acquired a majority stake in Shogini Technoarts Private Limited. Shogini Technoarts is a manufacturer of PCBs, and its product portfolio includes single-sided, multi-layered, metal clad and flex PCBs, which it manufactures in its facility in Pune. These products find use in industries including automotive, defence, medical, industrial and power electronics, telecom, and consumer durables. Besides this, Amber’s bare PCB manufacturing aspirations include multi-layer PCBs through its subsidiary Ascent Circuits, and HDI, flex PCB, and other products through its JV with Korea Circuits. PLI scheme approvals for Ascent's multi-layer PCB project have been received, with a committed investment of INR 9.9bn over the scheme tenure, while decisions on the second application for HDI PCBs, wherein an investment of INR 32bn is expected in the JV with Korea Circuits, are likely soon
* Acquires majority stake in Shogini Technoarts: Amber Enterprises, through its subsidiary ILJIN Electronics entered into a definitive agreement to purchase a majority stake in Shogini Technoarts Private Limited. Acquisition of majority stake in Shogini Technoarts will be completed at a mutually agreed value and will be disclosed separately post-closing. Shogini Technoarts, incorporated in 1982, is a prominent manufacturer of PCBs. Its product portfolio includes single-sided, double-sided, multi-layered, metal clad and flex PCBs, which it manufactures in its facility in Pune. Through these products, the Company caters to diverse enduse applications such as automotive, defence, medical electronics, industrial electronics, power electronics, process control, telecommunication, computer peripheral, and LED lighting.
* A brief on Shogini Technoart’s financials: The Company reported revenue of INR 3.9bn in FY25, +18% YoY. Over FY21-25, Shogini Technoarts has reported revenue CAGR of 22%. Further, in FY24, the Company posted EBITDA of INR 535mn, and margin of ~16%. Over FY21- 24, it has posted an EBITDA CAGR of 60%. FY24 PAT stood at INR 335mn. The Company has reported an average RoE/RoCE of 28%/17% over FY21-24, while net working capital stood at 82 days as of Mar’24. Lastly, as of Mar’24, Shogini Technoart’s gross total debt stood at INR 1bn, and net debt stood at INR 771mn, indicating a debt-to-equity and net debt-to-equity ratio of 1.5x and 1.1x respectively.
* Summarising Amber’s PCB manufacturing aspirations: Amber’s bare PCB manufacturing aspirations include multi-layer PCB through its subsidiary Ascent Circuits, and HDI, flex PCB, and other products through its JV with Korea Circuits. Basis this, Amber had filed two applications under the Electronic Component Manufacturing Scheme, one for multilayer PCBs through Ascent Circuits and the second for HDI PCBs through the JV with Korea Circuits. Approvals for Ascent's multi-layer PCB project have been received, with a committed investment of INR 9.9bn planned over the scheme tenure, while decisions on the second application for HDI PCBs, wherein an investment of INR 32bn is expected in the JV with Korea Circuits, is likely soon
* Revisiting Amber’s 2QFY26 performance: Amber 2Q revenue at INR 16.5bn, -2% YoY, was 12% and 13% lower than our and consensus estimate respectively. EBITDA stood at INR 913mn, -20% YoY, 24% and 30% lower than our and consensus estimate respectively. EBITDA margin at 5.5% contracted 120bps YoY and was 90bps lower than our estimate of 6.4% and 140bps lower than consensus estimate of 6.9%. Amber reported a loss of INR 329mn, vs. our estimate of a profit of INR 171mn and consensus estimate of a profit of INR 210mn.
Please refer disclaimer at https://www.jmfl.com/disclaimer
SEBI Registration Number is INM000010361
