AMBER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Here’s a comprehensive fundamental breakdown of Amber Enterprises India Ltd. (AMBER) — a leader in contract manufacturing for HVAC products, now trading near peak valuations with impressive earnings and volume strength.

🔍 Core Financial Health

ROE: 11.3%, ROCE: 14.5% — decent but below industry elite levels; reflects capital reinvestment.

EPS: ₹81.3 — strong earnings profile supporting long-term compounding.

PAT Qtr: ₹104 Cr (↓ from ₹116 Cr) — -10.3% dip, cyclical factors or margin adjustment.

Debt-to-Equity: 0.90 — relatively high gearing; worth watching if interest rates rise.

Dividend Yield: 0.00% — growth-focused; reinvests rather than returns.

📊 Valuation Insights

Metric Value Analysis

P/E Ratio 96.2 ⚠️ Extremely high — signals premium expectation

P/B Ratio ~11.6 Steep — reflects market’s optimism

PEG Ratio 3.19 Overvalued relative to growth

Intrinsic Value Below CMP Priced higher than fundamentals justify

🧪 Business Model & Competitive Advantage

Core business: OEM/ODM for white goods (ACs, coolers, consumer durables).

Clients include top brands like Voltas, Daikin, LG — sticky relationships & scale efficiency.

Rising demand for energy-efficient products and government PLI schemes are tailwinds.

Challenges

High debt and cyclical dependence on summer-season sales.

Margins susceptible to raw material price fluctuations.

📈 Technical Indicators

RSI: 64.7 — bordering overbought zone; caution on fresh entries.

MACD: +164 — robust momentum; bullish bias intact.

CMP ₹7,810 trading

Above DMA 50 & 200 — confirms trend strength.

Very close to 52W high ₹8,177 — limited immediate upside.

🎯 Entry Zone & Strategy

Entry Zone: ₹7,250–₹7,400 — ideal on mild pullbacks to DMA support levels.

Long-Term Holding View

Strong structural play in India’s manufacturing boom.

Execution risk manageable due to diversified client base.

Best suited for medium- to high-risk growth investors with patience.

Would you like a visual dashboard mapping Amber’s operating metrics vs peers like Dixon, Blue Star, or PG Electroplast to spot relative strengths and weaknesses? I’ve got some sharp tools for side-by-side comparisons 🔧📈.

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