Amber Enterprises has more than doubled investors’ wealth in the last year compared to the 46 percent run of Nifty50. On a year-to-date basis as well, the stock's 28 percent run-up beat Nifty50's 13 percent gain.
Since hitting a 52-week high in March 2021, the stock entered a consolidation phase. However, technical charts suggest that the stock is now ready to resume the second leg of the rally. Long-term investors can hold onto positions and look for an upside of over 20 percent from current levels, suggest experts.
The stock reclaimed Rs 3000 levels and the recent breakout gives traders the confidence that Amber Enterprises could rally towards Rs 3,600-3,660 which translates into an upside of over 20 percent in the next 3-6 months.
Amber Enterprises India is a prominent solution provider for the air conditioner OEM/ODM Industry in India with a market capitalisation of more than Rs 10,000 crore.
It has a dominant presence in RACs complete unit and deals in major RAC components with 10 manufacturing facilities across India.
“Amber Enterprises India is a prominent solution provider for air conditioner OEM/ODM Industry in India. India's air conditioning market will expand from US$4 billion currently to US$10 billion by FY26E, implying a 14% CAGR,” Ashish Chaturmohta, Director Research, Sanctum Wealth Management said.
Through acquisitions, Amber has backwards integrated into components and other AC applications. Import substitution and Production-Linked Incentives (PLI), coupled with export opportunities, provide strong growth prospects for the company.
“On the technical front, the stock had seen a major uptrend from lows around Rs 1000 odd levels to Rs 3664 in early March. Since then, the stock saw a decline to Rs 2680 odd levels, correcting 38.2% Fibonacci retracement level of the whole rally which is typically a correction level in a strong uptrend,” says Chaturmohta.
He further added that the stock has seen a pick in volume activity at lower levels indicating buying participation in the stock.
“The stock can be bought at current levels and dips to Rs 2900 with stop loss below Rs 2780 for the target of Rs 3600-3660 in the coming 3-6 months,” recommends Chaturmohta.
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