Amber Enterprises India Ltd, founded in 1990, is a leading manufacturer of air conditioning and refrigeration components in India. Over the years, the company has established a strong presence in the HVAC (Heating, Ventilation, and Air Conditioning) sector, providing key components for various air conditioning systems. This article provides a comprehensive overview of Amber Enterprises’ market performance, along with share price forecasts from 2024 to 2030.
Present Market Performance (2024)
As of October 2024, Amber Enterprises’ share price on the NSE is ₹5,420.10 INR. The stock has shown consistent growth in the past year, benefiting from the increasing demand for HVAC systems in India, especially due to the rise of smart home technologies and increased residential and commercial developments.
| Particulars | Data |
| Open Price | ₹5,450.05 |
| High Price | ₹5,512.30 |
| Low Price | ₹5,345.00 |
| P/E Ratio | 113.96 |
| 52-Week High | ₹5,665.95 |
| 52-Week Low | ₹2,721.05 |
| Market Cap | ₹18.24K Cr |
Shareholding Pattern (2024)
Amber Enterprises has a diversified shareholding pattern, which helps in maintaining balanced ownership between promoters, institutional investors, and public shareholders. Here’s the current breakdown:
| Stakeholders | Share |
| Promoters | 39.79% |
| Foreign Institutional Investors (FII) | 26.39% |
| Domestic Institutional Investors (DII) | 17.81% |
| Public | 16.02% |
Amber Share Price Target 2024,2025,2026,2027,2028,2029,2030
Amber Enterprises is projected to experience significant growth, driven by increased demand for energy-efficient air conditioning systems, expansion in domestic and international markets, and potential technological advancements. Below is a detailed share price forecast:
| Year | Share Price Target |
| Amber share price target 2024 | ₹7,610 |
| Amber share price target 2025 | ₹8,722 |
| Amber share price target 2026 | ₹9,970 |
| Amber share price target 2027 | ₹11,440 |
| Amber share price target 2028 | ₹13,082 |
| Amber share price target 2029 | ₹14,976 |
| Amber share price target 2030 | ₹17,125 |
Financial Performance and YoY Changes
Amber Enterprises’ financial performance as of June 2024 demonstrates impressive growth across key metrics, positioning the company for further expansion in the coming years.
| Metric | 2024 | YoY Change |
| Revenue | ₹24.01B | 41.09% |
| Operating Expenses | ₹2.85B | 36.75% |
| Net Income | ₹723.69M | 58.56% |
| EBITDA | ₹1.75B | 53.18% |
| Earnings per Share | ₹21.40 | 57.93% |
| Net Profit Margin | 3.01% | 12.31% |
| Effective Tax Rate | 28.49% | — |
This growth is primarily attributed to Amber’s ability to expand its manufacturing capacity, optimize production processes, and leverage its competitive position in the market.
Amber Enterprises India Ltd vs. Industry Ratios
| Particulars | Amber Ratio | Industry Ratio |
| Price-to-Earnings (P/E) Ratio | 113.96 | 40-50 |
| Price-to-Book (P/B) Ratio | 5.2 | 3.0-4.0 |
| Debt-to-Equity (D/E) Ratio | 0.45 | 0.5-0.7 |
| Return on Equity (ROE) | 6.80% | 12-15% |
| Current Ratio | 1.45 | 1.3-1.6 |
| Net Profit Margin | 3.01% | 8-10% |
| Earnings Per Share (EPS) | ₹21.40 | ₹35-₹50 |
1. Price-to-Earnings (P/E) Ratio:
- Amber: 113.96
- Industry Average: 40-50
Analysis: Amber’s P/E ratio is significantly higher than the industry average, indicating that the market expects stronger future growth for Amber. However, it also suggests potential overvaluation compared to peers like Voltas and Blue Star, which have more moderate P/E ratios.
2. Price-to-Book (P/B) Ratio:
- Amber: 5.24
- Industry Average: 3.0-4.0
Analysis: Amber’s P/B ratio is above the industry average, reflecting strong market confidence. While higher than peers, it may also imply that Amber is valued at a premium compared to other HVAC companies, despite similar growth prospects.
3. Debt-to-Equity (D/E) Ratio:
- Amber: 0.45
- Industry Average: 0.5-0.7
Analysis: Amber’s D/E ratio is slightly below the industry average, indicating a conservative approach to leverage. This is a positive sign, showing Amber has less debt-related risk than some competitors.
4. Return on Equity (ROE):
- Amber: 6.80%
- Industry Average: 12-15%
Analysis: Amber’s ROE is lower than the industry average, suggesting it is generating less profit from its shareholders’ equity than its competitors. This underperformance could indicate operational inefficiencies or higher costs relative to revenue.
5. Current Ratio:
- Amber: 1.45
- Industry Average: 1.3-1.6
Analysis: Amber’s current ratio is in line with industry standards, indicating that it has sufficient liquidity to cover short-term liabilities. This is a sign of healthy working capital management.
6. Net Profit Margin:
- Amber: 3.01%
- Industry Average: 8-10%
Analysis: Amber’s net profit margin is significantly below the industry average, highlighting concerns about the company’s ability to control costs and convert revenue into profits. Competitors like Voltas and Blue Star show higher profitability.
7. Earnings Per Share (EPS):
- Amber: ₹21.40
- Industry Average: ₹35-₹50
Analysis: Amber’s EPS is lower than the industry average, reflecting lower profitability per share compared to its peers. This is a sign that the company has room to improve its profit generation for shareholders.
Conclusion: How Amber Compares to the Industry
Valuation: Amber’s high P/E and P/B ratios suggest it is priced at a premium compared to industry peers. This reflects strong market expectations but could signal overvaluation.
Leverage: Amber’s low D/E ratio indicates lower financial risk, which is a positive compared to industry averages.
Profitability: Amber lags behind the industry in terms of ROE and net profit margin, meaning it is less efficient at converting revenue into profit than its competitors.
Liquidity: Amber’s current ratio is in line with industry norms, suggesting a stable liquidity position.
While Amber shows strengths in liquidity and leverage, it faces challenges in profitability and valuation compared to industry standards. Investors should consider whether the growth potential justifies the current high valuation, especially with competitors showing better profitability.
Competitor in Industry
Amber Enterprises competes with several large players in the Indian HVAC sector. These competitors offer both direct and indirect challenges, as the HVAC market grows increasingly competitive:
Blue Star Ltd
With a market capitalization of ~₹8,500 crore, Blue Star is a significant player in the air conditioning and commercial refrigeration sector.
Voltas Ltd
A Tata Group company, Voltas holds a market capitalization of ~₹25,000 crore, specializing in cooling solutions.
LG Electronics India Pvt Ltd
A global giant in consumer electronics, LG competes in the air conditioning space but is not publicly listed.
Daikin India Pvt Ltd
Another global competitor, Daikin is known for its advanced HVAC technology but is also not publicly listed.
Mitsubishi Electric India Pvt Ltd
Offering a wide range of HVAC solutions, Mitsubishi competes in both residential and commercial markets.
Key Growth Drivers for Amber Enterprises
1. Increased Demand for HVAC Products:
The rising demand for energy-efficient air conditioning systems, driven by both consumer and commercial needs, is one of the primary factors for Amber’s growth. The increasing urbanization and real estate development across India are also pushing HVAC product demand.
2. Technological Advancements:
The HVAC industry is undergoing rapid technological change, with innovations such as smart air conditioners and more eco-friendly refrigerants. Amber’s ability to incorporate these advancements into its product offerings will be a key growth driver.
3. Government Regulations on Energy Efficiency:
The Indian government’s focus on sustainability and energy efficiency has prompted increased demand for environmentally friendly HVAC systems. Amber’s alignment with these regulations offers a competitive advantage, as consumers and businesses look for more efficient and greener products.
Key Risks and Challenges
Despite the positive outlook, Amber Enterprises faces several risks that could impact its share price trajectory:
Supply Chain Disruptions
The company relies heavily on raw materials and components. Disruptions in the global supply chain, due to trade restrictions or other issues, could delay production and affect revenue.
Intense Competition
With numerous established players in the HVAC industry, Amber faces pricing pressure and market competition. Failure to differentiate its products or maintain competitive pricing could hinder growth.
Technological Disruption
The company must stay ahead of evolving technologies, particularly in the smart home and energy-efficient HVAC segment. Falling behind could result in lost market share to more innovative competitors.
Conclusion
Amber Enterprises India Ltd is well-positioned for long-term growth, driven by the rising demand for HVAC systems, strategic investments in technology, and its ability to navigate a competitive market. With a projected Amber share price target of ₹17,125 by 2030, investors may find Amber an attractive option for long-term capital appreciation. However, it is essential to keep in mind the risks posed by supply chain disruptions, competition, and technological advancements.
Investor Tip: Amber Enterprises offers solid growth potential, but investors should monitor macroeconomic conditions, especially in the HVAC sector, and stay updated on technological advancements to ensure the company maintains its competitive edge.
Roshan Sharma – Founder of StocksForBeginners.in
I’m Roshan Sharma, a stock market trader with 5+ years of experience. At StocksForBeginners.in, I provide expert fundamental analysis of Indian companies to help long-term investors make informed decisions. My mission is to simplify investing for beginners and share insights from my experience to guide others toward financial growth.