Amber Enterprises rises over 3% after block deals

Amber Enterprises share price: Shares of Amber Enterprises rose over 3 per cent to Rs 2,920 apiece on the BSE in the opening deals on Friday, August 25. According to a Zee Business report, Ascent Investment Holdings was expected to sell a 4 per cent stake in the company today via a block deal at Rs 2,800–Rs 2,815.3 apiece. The size of the deal is estimated at around Rs 379.4 crore. Ascent, as per the report, currently holds a 9.76 per cent stake in Amber Enterprises. The stock eventually ended at Rs 2,783.30, down over 1 per cent.

On August 24, the Government of Singapore bought 4.05 lakh shares of the company at Rs 2,800 per share in a block deal.

Amber Enterprises India is one of the leading solution providers for the heating, ventilation, and air conditioning (HVAC) industry in India. It has a presence in refrigeration and air conditioning (RACs), completely built units, and major RAC components, with 27 manufacturing facilities across India.

YES Securities, in its report dated July 26, noted that Amber Enterprises registered a revenue decline in its June 2023 quarter (Q1FY24) on the back of the subdued performance of the standalone business, which declined 16 per cent year-on-year (YoY). The decline was primarily on account of weak demand owing to unseasonal rains and weather patterns. 

"Subsidiaries, which largely consist of AC and non-AC components, saw growth of 28 per cent YoY. We now estimate Amber’s revenue, EBITDA, and PAT to grow at 12 per cent /24 per cent /45 per cent compound annual growth rate (CAGR) over FY23–25E. We continue with our positive stance on stock and maintain buy on the stock with a PT of Rs 2,929, valuing it at 30x FY25 EPS," the brokerage said.