Amber Enterprise stock surges 20% to hit all-time high ahead of Q2 results | Stock Market News
Source: Live Mint
Amber Enterprises’ shares soared 20 per cent on Monday, reaching a new high of ₹6,484.25 during intra-day trading on the BSE, ahead of the company’s Q2FY25 results scheduled for release on Tuesday, October 22.
The household appliances stock has significantly outperformed the market, soaring 41 per cent in just one month, compared to a 4.5 per cent drop in the benchmark index. Over the past seven months, the stock has surged 106 per cent from its price of ₹2,991.20 on March 20.
In the past week, Amber Enterprises’ stock price has surged by 20 percent following the announcement of a joint venture (JV) between Amber Group and Korea Circuit to produce printed circuit boards (PCBs) in India.
This JV marks a strategic move into high-tech and advanced manufacturing of HDI, Flex, and semiconductor substrate PCBs. The partnership reflects a shared vision to bring world-class technology and manufacturing excellence to India, addressing the rapidly growing demand for electronics in the domestic market.
Amber Enterprises stock performance
Amber Group, via its subsidiary IL JIN Electronics, will hold a 70 per cent stake in the joint venture, while Korea Circuit will own the remaining 30 per cent. According to a stock exchange filing, the company stated that this partnership aligns with the Indian government’s ‘Aatmanirbhar Bharat’ initiative, enhancing domestic value addition within the industry and promoting import substitution.
Amber is a highly integrated and comprehensive provider of solutions in the room air conditioner (RAC) segment, as well as for both RAC and non-RAC components. Over time, air conditioning has evolved from being considered a luxury to a necessity, with increasing demand in households, construction, infrastructure, and the hospitality industry, making this sector attractive for investment opportunities.
For the quarter ended June (Q1FY25), Amber reported a 60% year-on-year (YoY) increase in consolidated profit after tax, reaching ₹75 crore. Revenue surged 41% YoY to ₹2,401 crore, driven by strong demand for room air conditioners (RAC) due to a favorable summer season.
Thanks to favorable weather and robust secondary sales, Amber’s RAC segment grew 50% YoY, while the non-RAC components segment saw a 39% YoY increase. On average, this division grew 44% YoY.
Management remains optimistic about the long-term growth of the RAC segment, particularly in components, fueled by rising AC demand and the ongoing addition of new segments and clients in consumer durables. In the electronics division, the company is expanding its customer base in sectors like automotive, defense, medical, and telecom, with plans for rapid growth in this area. Amber is also broadening its market presence in railways, though ordering in this segment remains slow.
