Amber Enterprises Dives 20% on Poor Q4, Analysts See Upto 30% Upside in Stock

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Amber Enterprises Dives 20% on Poor Q4, Analysts See Upto 30% Upside in Stock
Credit: © Reuters.

By Malvika Gurung -- Shares of the air conditioner company Amber Enterprises nosedived 20% as the market closed on Monday, as opposed to the headline market indices Nifty50 and Sensex which ended 0.38% and 0.34% higher, respectively.

The stock dip came after the company’s weak earnings results for the March-ending quarter. Monday’s stock plunge of 20% is the company’s steepest fall since its listing on Jan 30, 2018.

The company’s bottomline and margins were largely hit in the quarter under review, led by higher raw material and operating costs.

Its net profit declined 46.6% YoY to Rs 32.39 crore in Q4, as operating costs surged 25% YoY to Rs 1,804 crore. Revenue rose 21% YoY to Rs 1,937 crore, on account of strong volumes and increased price realisations.

In FY22, Amber’s net profit fell 6.7% YoY to Rs 48.1 crore, and sales surged 36.7% YoY to Rs 3,137.60 crore.

In the past month, the company’s scrip has fallen about 21% and remained muted in a year.

Despite poor Q4 figures, analysts have recommended either holding or accumulating Amber’s shares, and have set a target price of up to Rs 3,500/share, an upside of 29.5%, driven by its diversification into the non-AC segment, strong cash flows, and improving margin profile, among others, which will underpin the company’s future growth.

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  • Amit Raina @Amit Raina
    Any details of analysts recommending buy/hold?Any link to that analysis?
    Like 0
  • Dev Dutt @Dev Dutt
    You forgot to add the scrip shortcut in article
    Like 0

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