Amba Enterprises – Transforming through Transformers

Amba Enterprises Limited (AEL) Mcap 80 Cr is a publicly listed company that specializes in the manufacturing and trading of transformer lamination products and materials. With a foundation dating back to 1995, 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. 

The company operates two manufacturing facilities at Nanded in Pune, Maharashtra for the manufacturing of laminated steel cores. The production teams consist of qualified professionals with over 15-20 years of experience in this field, ensuring the delivery of exceptional quality products within specified timelines.

Amba Enterprises claims to have maintained a zero percent rejection rate and has not received any customer complaints to date. This achievement reflects the company’s unwavering dedication to providing superior products that meet the highest standards of quality and customer satisfaction.

Amba Enterprises – Product Offering

  • CRNO/ CRNGO Lamination Strips – AEL manufactures high-quality CRNO/CRNGO Lamination strips in various sizes. They offer these strips in a range of specifications and provide customization options to meet clients’ precise requirements.
  • Transformer Lamination – The company has a long-standing association in the market for this product. They are offering an extensive array of Transformer Laminations and strips.
  • In addition to these, Amba also offers a diverse range of other products. These include Generator and Alternator Stampings, Motor and Pumps Stampings, Solid and Full Coil, Inserted Shaft with Rotor, and Die Cast Rotor.

(You can refer to any short video that explains the concept of transformers and their components for a better understanding of the applications of these products).

The company takes pride in manufacturing a wide array of products that cater to the specific needs and custom requirements of both domestic and international customers. Their extensive range of offerings ensures that they can serve various applications and industries with reliable and high-quality solutions.

Their products are used as one of the most crucial components of their clients’ value chain. They are mainly used in industries down the value chain like manufacturing of UPS, Transformers, Energy distribution, Automobile, Electrical equipment and appliances, etc.

Industry insights

The Indian Government has implemented various initiatives to foster the development of the domestic electronics manufacturing industry. Notably, the Make in India and Digital India initiatives have played a pivotal role in boosting the growth of domestic electronics production. As a result, the Indian Electronic Components Market has witnessed a significant expansion, increasing from $11 billion in FY 2009-10 to $20.8 billion in FY 2018-19 (excluding imported Printed Circuit Board assemblies). This represents a year-on-year growth rate of approximately 7%. These initiatives have been instrumental in promoting indigenous manufacturing capabilities and driving the growth of the electronics sector in India.

India has set ambitious targets for the electronics manufacturing industry, aiming to achieve a manufacturing worth of $300 billion and exports worth $120 billion by FY 2026. These goals align with the broader vision of establishing a $1 trillion digital economy by 2025. According to the Economic survey, the key drivers fueling the growth in this industry include mobile phones, consumer electronics, and industrial electronics. These sectors are expected to contribute significantly to the expansion of the electronics manufacturing sector in India, driving economic development and creating employment opportunities.

To establish India as a prominent global hub for Electronics System Design and Manufacturing (ESDM) and to advance the vision of the National Policy on Electronics (NPE) 2019, the government introduced three schemes in April 2020. The schemes include the Production Linked Incentive Scheme (PLI), the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Modified Electronics Manufacturing Clusters Scheme (EMC 2.0). These initiatives were launched with the aim of promoting domestic electronics manufacturing, attracting investments, and creating a favourable ecosystem for the growth of the ESDM sector in India.

The current government with a view to boosting 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

Amba Enterprises – Financial Standings

  • Amba Enterprises have grown its top line consistently over the years with a CAGR of 38% for the last 10 years. This shows the growing market demand and successful products.
  • AEL has maintained a stable OPM between 2% and 4%. They have reportedly met their fixed costs and envisaged their operating margin to increase by 1%  each year for the next 3 years.
  • The Net Profit has shown a steady growth trajectory with a significant rise in the latest years. This indicates improved profitability and financial performance. 
  • The Debtor Days have improved consistently over the years, indicating an improvement in efficiency in debt collection.
  • AEL has shown very less Inventory Days in the last 4 years. This can indicate better inventory management and faster inventory turnover.
  • The cash Conversion Cycle has improved extraordinarily. This suggests better management of the working capital and increased efficiency in terms of resource employment. This is also evident from the improving Working Capital Days.
  • The ROCE has significantly increased, suggesting improved efficiency in the utilization of working capital.


Source: AEL Profile Presentation

Potential Growth Triggers

  • AEL is planning to increase its production capacity at its plant in Kapsons, Jalandhar, Punjab
  • As per the recent disclosure, the company is also exploring new opportunities and conducting feasibility in new products and components in the EV sector.
  • The company is trying to add more customer base in FY23 – FY24. Negotiations with Havells are in initial stages and incremental revenue of almost INR 100cr+ is expected in the coming year. 
  • Additionally, the Company is exploring options and opportunities and conducting feasibility in new products and components in the EV Sector.
  • The company is targeting a revenue of 550 Cr by 2025

What we like?

Highly experienced track record: AEL has a long track record of over two decades of operations in transformer core lamination activities.

Long-Term Relationship: Over the years, the company has established long-term relationships with its customers and reputed suppliers.

Experienced promoter and a technocrat: The overall operations of AEL are looked after by Mr Ketan Mehta, who took over the charge of the company in 2006 as the MD. He possesses an extensive experience of over 25 years in the field of electrical steel stamping & lamination activities. Moreover, he is also assisted by the second line of management possessing relevant experience in the said field. 

Diversified applications: AEL products are used in a variety of downstream industries, including UPS, Energy, Distribution Transformer, Electrical, Automobile, Engineering, and Appliances

What we don’t like?

Competition: AEL operates in a competitive environment with a large no. of organized and unorganized steel players operating in the market
Low OPM: 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

See you next time.

Until then… Stay Prudent!

Also read:

Disclaimer: This article is provided for informational purposes only and should not be considered investment advice.

2 thoughts on “Amba Enterprises – Transforming through Transformers”

Leave a Comment

Your email address will not be published. Required fields are marked *