ROCE:-20.6 %
Market Cap:-194 Cr.
P/E:-33.6
Share Price:-₹ 153
Amba Enterprises Limited is a public limited company manufacturing and trading transformer lamination products and materials since 1992.
Business:-
Amba Enterprises Limited, with a manufacturing capacity of about 3500 MT per year, is one of India's largest manufacturers of transformer core lamination.
Amba Enterprises Limited provides a wide range of products like Silicon Steel Slit Coils, Cut to Size Transformer Laminations, Torroidal Cores, Motor Stamping, and Die Casting Rotors.
AEL offers a wide range of stampings/laminations suitable for various applications. They are available in different sizes up to 1250mm OD. The range of rotors is available from 40mm dia to 500 mm dia and up to 600mm height.
Products
CRNGO
E&I Transformer - All Regular Sizes
Strip Lamination
Mitre
Motor Stamping - upto 1250mm OD
Die Cast Rotor - 40mm dia to 500 mm dia and up to 600mn height
CRGO
E&I Transformer - All Regular Sizes
Strip Lamination
Mitre
Torroidal Cores
Services
Silicon Steel Slit Coils - 20mm to 1200mm
Assembly Core - 1kg to 200kg
Cut to Length - Width: 25mm to 400mm, Length: up to 2000mm
Shaft Insertion in Die Cast Rotors
Production Process:-
Facility:-
The company has a production unit in Pune with a manufacturing capacity of ~3500 MT per year.
Usuage:-
AEL products are used in a variety of downstream industries, including UPS, Energy, Distribution Transformer, Electrical, Automobile, Engineering, and Appliances.
Clients:-
Management:-
The company has established itself under the capable leadership of Mr Ketan Mehta, who has been at the helm since 2006. Mr. Mehta possesses extensive market knowledge and has a long-term vision for success.
Growth:-
The current government to boost investments in railways, power plants, construction, housing, and other industrial activities; since electrical steel is applied in diverse items viz. transformers, ballasts, motors, pumps, fans, windmill generators, and various other industrial purposes.
Exclusive Business Outsourcing Agreement
Exclusive Business Outsourcing Agreement (motor stamping business segment) will be entered into between Amba Enterprises Limited and Kapsons Industries Private Limited for a period of 4 years.
A prosperous empire since 1981, Kapsons is an outstanding pioneer in manufacturing & supplying die-cast automobile & electrical components, all over India. A firm with strong endurance, Kapsons Industries operates from Jalandhar with two eco-friendly gargantuan units.
This agreement is expected to significantly enhance the Company's business capacity, with an estimated 4 to 5 times increase, and contribute to a substantial improvement in turnover and financial position in the coming years.
Risk:-
Competition:- AEL operates in a competitive environment with a large no. of organized and unorganized steel players operating in the market.
Profitability:- For the company, steel is the primary input material. Hence, any fluctuations in the steel prices would have a direct bearing on its turnover and profitability.
Disclaimer:- This is not a Buy or Sell recommendation. Only For Educational Purposes.