115% return in one year: Brokerage suggests buying Amber Enterprises stock, check target price

The Indian Meteorological Department (IMD) forecasts that the summer season will be hotter than usual in most regions of the nation. In CY23, the nation had its second hottest year in 122 years. As the hot summer months offer problems to agricultural output and animal husbandry, certain industries appear as intriguing development opportunities.

Electronic and electric products manufacturers, for example, are expected to experience an increase in activity. Amidst, brokerage SBI Securities recommends buying Amber Enterprises India stock. The company is the country's leading manufacturer of room air conditioners (RAC) and has 29 per cent stake in the Indian RAC Industry.

Amber Enterprises share: Price target

After Amber Enterprises' strong quarterly performance, brokerage SBI Securities recommended buying the stock with a target of Rs 4,840. The target implies an upside of more than 15 per cent from Friday's closing price.

The brokerage suggests investors buy the stock with a one-year perspective.

Why brokerage SBI Securities is bullish on the stock

According to SBI Securities, the company's diversified portfolio includes room ACs (indoor and outdoor units as well as window ACs). Amber Enterprises also offers RAC components such as heat exchangers, injection molded plastic components, motors, copper tubing, cross-flow and axial fans, and sheet metal components. The brokerage says that in some areas of the south, there has been a 100 per cent jump in demand on an annual basis.

The company provides services to wearables, hearables, auto, and telecom sectors. The recent acquisition of a 60 per cent stake in Ascent Circuits marks the company's entry into PCB manufacturing with backward integration.

Amber Enterprises will benefit from localisation of components for passenger rail coaches. Titagarh Rail has a large passenger coach order book worth Rs 13,816 crore in Vande Bharat and Metro Rail. Amber Enterprises is likely to get the order for the HVAC system and other components for these coaches.

Amber Enterprises share price history

The company's shares jumped almost 20 per cent in the last six months, around 30 per cent on a year-to-date (YTD) basis, and 115 per cent in the one year. Amber Enterprises shares climbed over 400 per cent in the last five years. On the BSE, the company's stock last traded at Rs 3,967.95 each, up 1.39 per cent on Friday, May 3.

(The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult their investment advisers before making any financial decision.)

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