Amber Enterprises up 5% on CLSA ‘buy’ call, 19% upside seen

Shares of Amber Enterprises surged 5.7 percent on March 22 after global brokerage firm CLSA shared a “buy” rating on the counter amid attractive valuations, raising target price to Rs 4,300, implying an upside of over 19 percent from the current level.

The stock of the white goods maker has surged over 13 percent this year against a 0.7 percent rise in the benchmark Sensex. The stock hit a 52-week high of Rs 4,615 on January 31.

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After sliding 14 percent in the past month, analysts at CLSA said the recent correction offers an attractive entry point. “The weakness likely driven by softness in broader markets is overdone. The medium-term thesis of strong growth in non-RAC (refrigeration and air conditioning) segment remains intact,” they said.

The brokerage said even if RAC’s market share falls 19 percent or 10 percent by FY30/40, other segments are likely to contribute 50 percent to revenue in the next five years.

Earlier, Amber Enterprises signed definitive agreements to acquire a 50 percent stake in Resojet to manufacture fully automatic and front-load washing machines, strengthening its consumer durable verticle.

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Analysts at Sharekhan also shared a “buy” call on Amber Enterprises, sharing a target price of Rs 4,100 a share, saying that the company is well placed to capture rising demand from components ecosystem development.

“The management remains confident about growth in components industry, customer additions, and exports in the next three-four years. Further, traction in high-growth sectors such as railways also augurs well. We believe the recent weakness in Amber’s stock price is a good opportunity to accumulate the stock,” they added.

At 11.29 am, the stock was trading at Rs 3,532.95 on NSE, up 3.72 percent from the previous close.

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