While some brokerages say Amber Enterprises’ strategic manufacturing collaboration with Oppo Mobiles India, which marks its foray into the smartphone manufacturing segment, is value accretive, others remain cautious amid multiple headwinds.
In a regulatory filing released last week, Amber Enterprises said it has entered into a manufacturing collaboration agreement with Oppo India, a licensed manufacturer of smartphones for brands including OPPO, OnePlus, and Realme in the Indian market.
As part of the partnership, Amber will manufacture mobile phones for these brands, leveraging its manufacturing scale, operational expertise, local supply chain strengths, and capabilities to enhance domestic value addition. The collaboration combines the brands' global product expertise with Amber's growing manufacturing ecosystem in India.
Also read: Amber Enterprises' manufacturing partnership with Oppo India
Nuvama on Amber Enterprises
Nuvama Institutional Equities said the deal marks Amber’s “value accretive foray” into the mobile segment. It believes the development is positive as it expands TAM, reduces current summer seasonality, brings in a ready customer for its HDI/Flex boards business, and is value accretive.
“This business is a long-term, asset-light extension of Amber's diversification arc and a structural lever to dilute seasonality of the core RAC business,” Nuvama said, while reiterating its ‘Buy’ call on the stock. It raised its target price to Rs 9,200 per share, implying an upside potential of nearly 17% from the previous closing price.
PL Capital on Amber Enterprises
PL Capital also increased its target price to Rs 9,375 per share, implying an upside potential of nearly 19%, while maintaining its ‘Buy’ rating.
“While smartphone manufacturing is expected to be a high-volume, low-margin business with EBITDA margins of 1.5–2%, management believes the segment can generate attractive RoCE of 30–35%, supported by high asset turns, low working capital requirements, and increasing localisation,” it said.
Incorporating the mobile business contribution in its FY28 estimates, PL Capital increased its FY28 EPS estimate by 10%.
“We estimate revenue/EBITDA/PAT CAGR of 42.3%/33.1%/80.7% over FY26-28E, with EBITDA margin contracting by about 100 bps to 6.8% by FY28E,” it added.
JM Financial on Amber Enterprises
JM Financial, however, maintained its ‘Reduce’ rating with a target price of Rs 8,100 per share.
It said Amber’s foray into smartphone manufacturing via the Oppo tie-up exposes it to aggressive competition, thin margins, and scale-related challenges, while government localisation push and backward integration remain key opportunities.
“Amber aims to scale up production to about 8 million smartphones in FY28E and 14–15 million in FY29E, with margins of 1.5–2%. Factoring this in, we raise our FY27–29E EPS estimates by 2–13%,” it said.
Amber Enterprises share price
Amber Enterprises shares have gained more than 4% in one week and 8% in one month. The stock has risen 23% in 2026 so far and 22% over one year.
Over the longer term, the stock has gained 238% in three years and 186% in five years.
The company currently has a market capitalisation of over Rs 28,000 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
