Amber Enterprises stock jumps over 7% after boost from global brokerage target raise

Amber Enterprises' shares soared higher by over 7 per cent on Wednesday, October 25, to touch the day's high of Rs 3,000 apiece. The stock is rising higher after an increase in price targets by global brokerages.

At around 10:37 a.m., shares of Amber Enterprises traded 6.43 per cent higher on BSE at Rs 2,962.6 apiece. The market capitalisation as of the same time stood at Rs 9,982.1 crore. 

Global brokerages Jefferies, Goldman Sachs, and CLSA are bullish on Amber Enterprises as they see healthy growth in the company in the near future.

Jefferies has maintained a 'buy' call and has raised the target price for the stock to Rs 3,990 from Rs 3,740 with a belief that the company's capital expenditure would normalise from FY25, supported by return on capital employed expansion. 

Further, the brokerage has highlighted that the company's sales in electronics mobility will grow twice over the next two years.

Meanwhile, Goldman Sachs has also maintained a 'buy' and raised the target to Rs 2,990 from Rs 2,920. 

The brokerage believes that scaling up subsidiaries and components would improve profitability. 

Likewise, CLSA has also maintained a 'buy' with a target of Rs 3,650 apiece.

How has Amber Enterprises fared in Q2? 

The company's consolidated loss for the second quarter of the current fiscal expanded to Rs 7 crore as against Rs 2.5 crore in the same quarter last year. On the other hand, revenue saw a healthy growth of 24 per cent at Rs 927 crore as against Rs 750 crore year-on-year (YoY).

The earnings before interest, depreciation, and amortisation (EBITDA) stood at Rs 59.6 crore as compared to Rs 36.7 crore, up 62 per cent a year ago. Margins also grew 6.42 per cent from 4.89 per cent (YoY) 

Amber Enterprises bulk deal 

On Monday, Franklin Templeton Mutual Fund bought 2 lakh shares (0.59 per cent) of Amber Enterprises at Rs 2,820 per share.

Amber Enterprises share price: Past performance 

In 2023, Amber Enterprises shares have gained over 57 per cent sharp rise against Nifty 50's rise of over 6 per cent.

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