UBS assigns 'buy' on India's Amber Enterprises, Dixon Technologies on improved demand

Amber Enterprises India

15/12/2023 07:04

** India's consumer electronics components and devices
makers like Amber Enterprises  AMBE.NS  and Dixon Technologies
 DIXO.NS  could extend rally due to improved demand, says UBS
    ** Initiates coverage on air-conditioners maker AMBE with a
"buy", citing healthy demand outlook due to rising frequency of
heatwaves and likely upside in exports, electronics and mobility
products
    ** Sees AMBE's focus on supplying components for both AC and
non-AC durables as a major positive; expects an earnings
compound average growth rate (CAGR) of 25% in fiscal 2024 to
2026
    ** Also begins coverage of DIXO with a "buy" on growth
opportunities in mobiles and information technology (IT)
hardware 
    ** Adds production-linked incentive schemes, focus on
indigenisation, non-tariff barriers and preference for domestic
vendor procurement favourable for the sector
    ** Shares of AMBE up as much as 8.75% on the day; DIXO rises
1.5%, before trimming gains - LSEG data 

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))