It will take 4-5 years for the PLI benefits to pan out says Pankaj Pandey, Head Research, ICICIdirect.com
Are you betting on any PLI beneficiary as a house call?This is a year of midcaps and small caps and Amber is one of the companies which is expected to benefit from PLI. We have a buy rating on the stock and our view is there is an opportunity of about nearly Rs 10,000 odd crore because our sense is that the government would eventually look to restrict either the import of room air-conditioners or its components and which is why the domestic components will go up.
The other leg of this opportunity is an export opportunity of nearly Rs 27,000-odd crore. PLI is going to help in both the cases. The company has announced a capex of Rs 300 crore to tap this opportunity and they should be able to grow their revenues by nearly 20% and profits by even more at about 26%. That is why we like the stock.