Amber Enterprises is a consumer electric company. The company dominates the original equipment manufacturer (OEM), original design manufacturer (ODM) market for room air conditioners in India.
The company is the largest contract manufacture of ACs in India and the largest supplier of roof mounted package unit air conditioners for the Indian Railways.
Amber generates about 70% of revenues from RAC and RAC component segments.
Considering its established presence in the domestic room AC market, the company could emerge as a big beneficiary in the upcoming summer season. More so now because shares of the company have seen a sharp fall owing to weak quarterly results.
Amber Enterprises had reported a net loss of ₹29.8 million for the September 2022 quarter as compared to a net profit of ₹74.3 million in the previous year quarter as finance costs increased. In the last 5 years, the company has doubled its sales and net profit.
The company has reported that its RAC and components division business has scaled up capabilities and have grown by 109% in December 2022 quarter.
The company’s chairman Jasbir Singh has highlighted that almost all the brands have increased their orders and the company will increase production from the current 60% capacity level to 75% by March 2023.
The stock price is taking support on the 61.8% retracement level. It seems like a very good opportunity to acquire shares of this stock. The price has been under the 100-day exponential moving average for quite a period and the MFI has been under 30 for the past few months. Stock price is fairly oversold.
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