Dixon Tech and Amber Enterprise: Credit Suisse on India’s Consumer Durables Sector
Apart from brand owners, Amber/Dixon are leading competitors from a manufacturing perspective. While both stocks have outperformed recently, Credit Suisse initiates coverage of them with OUTPERFORM ratings based on their strong extant platform and growth outlook, multiple medium-term opportunities, still-reasonable valuations on FY23E basis, strong cash flows and return ratios, and incremental catalyst of activation of phased manufacturing programme and incentive scheme beyond mobiles.
Amber now manufactures about 25% of ACs sold in India, with 15 manufacturing facilities and has built/acquired capabilities for vertical integration: Reuters