Amber Enterprises Shares Decline; Analyst Target Rises

Amber Enterprises Shares Trade Lower for Second Day Despite Jefferies Highlighting Growth Catalysts​

Shares of Amber Enterprises India Ltd. continued to trade with losses for the second straight session on Tuesday, March 10, even as brokerage firm Jefferies maintained a positive outlook on the company and highlighted multiple growth drivers ahead.

Jefferies Maintains ‘Buy’ Rating with ₹9,120 Target​

Jefferies has reiterated its ‘buy’ rating on Amber Enterprises and set a price target of ₹9,120 per share, implying a potential upside of 24.6 percent from the stock’s previous closing level.

The brokerage noted that the stock has rallied more than 40 percent from its January lows, largely supported by the company’s strong performance in the December quarter.

Following this surge, Amber Enterprises is currently trading at 47 times its estimated FY27 price to earnings ratio, which is about 5 percent higher than its historical five year average valuation.

Multiple Growth Catalysts Identified​

Despite the elevated valuation, Jefferies pointed to several near term and medium term catalysts that could support further growth.

These include:

• Strong summer demand for cooling products
• Expansion in the electronics segment
• Ramp up from recent acquisitions
• Addition of two new customers in the data center business

The brokerage also expects the room air conditioner (RAC) industry volume to grow in the mid teen range during the current calendar year, supported by a relatively low base.

Electronics Business Expansion​

In the electronics segment, Amber Enterprises has secured three ECMS approvals, along with funding, technology, and land allocation for PCG manufacturing.

The company is also targeting significant growth in its mobility segment, aiming to double mobility related sales over the next three years.

Jefferies estimates that the company could deliver over 48 percent compound annual growth rate (CAGR) between FY25 and FY28.

Analyst Coverage Remains Largely Positive​

Among 31 analysts covering Amber Enterprises, the majority remain optimistic about the stock’s prospects.

• 24 analysts have a buy rating
• 6 analysts have a hold rating
• 1 analyst has a sell rating

Stock Performance​

During Tuesday’s session, the stock briefly recovered during trading but continued to remain under pressure for the second consecutive day.

As of around 10:30 am on Tuesday, shares of Amber Enterprises were trading flat at ₹7,318 per share.

On a broader timeframe, the stock has declined about 2.5 percent over the past month.