Synopsis: Jefferies gave a buy rating on Amber Enterprises India Ltd and raised its target price to Rs 9,120. The broking highlighted several growth drivers, including rising RAC demand, expansion in electronics manufacturing and opportunities in mobility and data centre businesses that could drive strong earnings growth over the next few years.
Amber Enterprises India Limited is expected to benefit from multiple medium-term growth triggers, as Jefferies has stated. Jefferies has stated that the company is in a very strong position in the room air conditioner manufacturing value chain and has expanded into the electronics manufacturing value chain, mobility solutions, and data centre solutions. This is expected to help the company grow its earnings in the long term.
With a market cap of Rs 25,669 crore, the shares of Amber Enterprises India Ltd are trading at Rs 7,294. The shares are trading at a PE of 110, whereas their industry’s PE is at 43.2, and they have given a return of more than 110% over the last 5 years.
Shares in Amber Enterprises India Ltd are in the spotlight as Jefferies has reaffirmed its ‘Buy’ rating and raised the target price to Rs 9,120 from Rs 8,890. This represents an appreciation of almost 25% over the previous stock prices. Despite the company’s short-term stock price volatility, the broking firm has identified several triggers for the company’s earnings growth in the coming years.
Amber Enterprises India shares have gained over 40% since the company’s January lows, as its December quarter results were robust. Now, the stock is trading at 47 times its estimated price/earnings for FY27, which is 5% higher than its historical average over the last five years. Despite the high valuation, Jefferies is upbeat on the company’s growth prospects.
Strong Demand Outlook for RAC Business
Another factor emphasised in the report is the business prospects of the room air conditioner (RAC) industry, which is Amber’s core business segment. The broking firm has predicted mid-teens growth in volumes for the RAC industry in CY26, based on a low base and seasonal demand from the summer season. Amber is one of the largest original design manufacturers in the RAC ecosystem and is expected to gain from the rising demand in the RAC business.
In addition to Amber’s core business of consumer durables, the company is expanding its business in the electronics manufacturing space as well. Amber has secured three approvals under the ECMS scheme, along with funding, technology partnerships, and land for PCB manufacturing.
Expansion Into New Business Segments
Jefferies also pointed out Amber’s efforts in expanding its business in new growth segments like data centres and mobility components. The company has added two new customers in its data centre business, in addition to its plans to double its mobility segment sales in the next three years.
Given all these catalysts, Jefferies expects earnings per share of Amber Enterprises to increase at a compound annual growth rate of 48% between FY25 and FY28. Jefferies expects that the company’s expansion in the RAC, electronics, and mobility segments will provide it with earnings growth in the medium term.
Financials
The revenue from operations for the company stood at Rs 2,133 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 2,943 crore, up by about 27.8 per cent YoY. However, the net loss stood at Rs 9.34 crore in Q3 FY26, down compared to the Rs 37 crore profit in Q3 FY25.
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