Amber Enterprises gains on Singapore picking up 1.2% stake

Shares of Amber Enterprises jumped nearly 2 percent in early trade on August 25, as the market is viewing the Government of Singapore’s 1.2-percent stake buy in the company as a positive.

At 9:59 am the Amber Enterprises stock was trading 1.23 percent higher at Rs 2,850 on NSE.

The Government of Singapore has bought 4.05 lakh equity shares in Amber Enterprises India – which provides solutions to air conditioner OEMs and the ODM industry – via open market transactions, at an average price of Rs 2,800 per share. The stake buy was worth Rs 113.48 crore.

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Details of the block deal today

Amber Enterprises witnessed a large trade of 9.35 lakh shares (2.8 percent equity) worth Rs 262 crore change hands on the NSE in the block deal window, reported CNBC-TV18.

Brokerage Views

Global brokerage firm Jefferies is bullish on the stock and has assigned a ‘buy’ rating to the Amber Enterprise share, with a target price of Rs 3,390 per share in a report dated August 18.

Brokerage firm Sharekhan has given a ‘buy’ rating to the Amber Enterprise stock with a target price of Rs 2,800, in a report dated July 26. The brokerage firm further added that, “we maintain a ‘buy’ with a revised price target of Rs 2,800 (based on FY2025E EPS), as we expect profitability to improve backed by better product profile in the RAC division, traction in motors, electronics, and mobility division, as well as growth in exports.”

ICICI Securities has given a ‘hold’ rating to the Amber Enterprise stock with a target price of Rs 2,297 in a report dated July 27, signifying a potential downside of more than 5 percent from the current market price. The brokerage firm further stated that, “Unseasonal rains in North India in Apr’23 have impacted the revenue growth rates. However, we note Amber has gained market shares and reported a revenue decline of just 6.8 percent vs industry revenue decline of 20-25 percent YoY.”

“The strategy to focus on components business is working well. It has been able to partially arrest volume decline and expand margins. Considering elevated channel inventory, the Refrigeration and Air Conditioning (RAC) industry is expected to revive only in Q4FY24.”

Stock Performance

Amber Enterprises stock has gained 51 percent over the last six months, compared to a 12-percent rise in the Nifty during the same period.

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