⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AMBER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | AMBER | Market Cap | 24,028 Cr. | Current Price | 6,829 ₹ | High / Low | 8,626 ₹ |
| Stock P/E | 165 | Book Value | 830 ₹ | Dividend Yield | 0.00 % | ROCE | 11.6 % |
| ROE | 7.63 % | Face Value | 10.0 ₹ | DMA 50 | 7,096 ₹ | DMA 200 | 6,992 ₹ |
| Chg in FII Hold | -3.63 % | Chg in DII Hold | 3.66 % | PAT Qtr | 46.4 Cr. | PAT Prev Qtr | -48.7 Cr. |
| RSI | 43.0 | MACD | -89.4 | Volume | 3,19,222 | Avg Vol 1Wk | 5,30,329 |
| Low price | 5,400 ₹ | High price | 8,626 ₹ | PEG Ratio | 3.98 | Debt to equity | 0.69 |
| 52w Index | 44.3 % | Qtr Profit Var | 104 % | EPS | 41.8 ₹ | Industry PE | 43.3 |
📊 Financials
- Revenue & Profitability: PAT improved significantly from -₹48.7 Cr. to ₹46.4 Cr., showing a turnaround. EPS at ₹41.8 is modest relative to valuation.
- Margins & Returns: ROCE at 11.6% and ROE at 7.63% are weak, reflecting limited efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.69 indicates moderate leverage, requiring monitoring.
- Cash Flow: No dividend yield, suggesting reinvestment but limited direct shareholder returns.
💹 Valuation
- P/E Ratio: 165 vs Industry PE of 43.3 — extremely overvalued.
- P/B Ratio: Current price ₹6,829 vs Book Value ₹830 — ~8.2x book value, expensive.
- PEG Ratio: 3.98 — indicates stretched valuation relative to growth.
- Intrinsic Value: Current price is far above fair value, offering little margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in consumer durables (air conditioners and appliances), benefiting from rising demand.
- Turnaround in profitability highlights operational recovery.
- High debt and weak returns limit competitive strength compared to peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Reasonable accumulation range between ₹5,400 – ₹6,000, closer to its 52-week low.
- Long-Term Holding: Fundamentals are weak relative to valuation. Suitable only for high-risk investors betting on consumer durable growth. Accumulate cautiously on dips.
✅ Positive
- Turnaround in profitability with PAT improving to ₹46.4 Cr.
- DII holdings increased by 3.66%, showing strong domestic institutional confidence.
- EPS of ₹41.8 reflects earnings recovery.
⚠️ Limitation
- Extremely high P/E ratio (165) compared to industry average.
- Weak ROCE (11.6%) and ROE (7.63%) highlight poor efficiency.
- Debt-to-equity ratio of 0.69 indicates moderate leverage.
📉 Company Negative News
- FII holdings declined by 3.63%, showing reduced foreign investor confidence.
- MACD at -89.4 and RSI at 43.0 reflect bearish technical signals.
📈 Company Positive News
- Quarterly profit turnaround highlights operational recovery.
- DII holdings increased significantly, showing confidence from domestic institutions.
🏭 Industry
- Consumer durables sector benefits from rising disposable income and urban demand.
- Industry PE at 43.3 is far lower than company’s valuation, highlighting relative overpricing of AMBER.
🔎 Conclusion
AMBER shows a turnaround in profitability and strong domestic institutional support, but suffers from extremely high valuations, weak efficiency, and moderate debt levels. While industry demand is favorable, the stock trades at a steep premium. Best strategy: accumulate cautiously near ₹5,400–₹6,000 only if confident in long-term consumer durable growth, otherwise avoid due to valuation risks.