Amber Enterprises shares rise 7%, hit record high for second session 

Shares of Amber Enterprises gained over 7% to hit a record high for the second consecutive session today. The rally in the stock comes after global brokerage Jefferies maintained its buy call on the stock assigning a price target of Rs 5,200 to the stock.  

In a report, Jefferies said the domestic AC industry 's volume is expected to triple from FY24-FY30
Volumes, which stood at 10 mn units in FY24 are likely to rise to 13 mn units in FY25 (estimated)  post a strong summer. Further, the volume is expected to rise to 30-35 million units by 2030 implying a 17% CAGR over the next 7 years. 

Hot weather in India is key tailwind for growth in AC industry.

Amber Enterprises stock opened lower at Rs 4978.95 today against the previous close of Rs 4993.70 on BSE.  Later, it rose 7.42% to a high of Rs 5364.55. Market cap of the firm stood at Rs 16,856 crore. Total 0.53 lakh shares changed hands amounting to a turnover of Rs 27.26 crore on BSE. Amber Enterprises stock has gained 68% in a year and risen 59 per cent in 2024.   

In August, Motilal Oswal assigned a price target of Rs 5,000 to the stock which was met today. 

"We estimate a revenue/EBITDA/PAT CAGR of 21%/26%/50% over FY24-27, which is likely to be driven by mid-teens CAGR in the consumer durable segment, high growth in the electronics and mobility segments, and a 100 bps margin improvement over FY24-27. We initiate coverage on Amber with a BUY rating and a DCF-based TP of Rs 5,000, implying 42x P/E on two-year forward EPS (Sep’26E)," said Motilal Oswal. 

In terms of technicals, the relative strength index (RSI) of Amber Enterprises stood at 68.3, signaling it's trading neither in overbought nor in the oversold zone. Amber Enterprises stock has a one-year beta of 1, indicating average volatility during the period. Amber Enterprises shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.   

Amber Enterprises manufactures heating and ventilation equipment. The company offers refrigerators, heat exchangers, air conditioners, home appliances, vacuum forming, and lighting products. Amber Enterprises also produces auto parts, injection molding, and sheet metal components.