Amber Enterprises Rises as Singapore Acquires 1.2% Stake

25 Aug, 2023

Amber Enterprises Rises as Singapore Acquires 1.2% Stake

Amber Enterprises Witnesses Upward Surge as Singapore Acquires Stake

In the early trade on August 25, shares of Amber Enterprises experienced a robust jump of nearly 2%. This significant movement in the market can be attributed to the Government of Singapore's acquisition of a 1.2% stake in the company, perceived as a positive development.

At 9:59 am, the stock of Amber Enterprises was trading 1.23% higher at Rs 2,850 on the NSE (National Stock Exchange).

The Government of Singapore executed its stake acquisition in Amber Enterprises India, a prominent player providing solutions to air conditioner OEMs and the ODM industry. This acquisition encompassed 4.05 lakh equity shares, procured through open market transactions, at an average price of Rs 2,800 per share. The transaction amounted to Rs 113.48 crore.

Amber Enterprises observed a substantial trade activity, with 9.35 lakh shares (equivalent to 2.8% equity) worth Rs 262 crore changing hands on the NSE through a block deal, as reported by CNBC-TV18.

Brokerage Ratings

Reputed global brokerage firm Jefferies holds a bullish outlook on the stock, assigning a 'buy' rating to Amber Enterprises. In their report dated August 18, they set a target price of Rs 3,390 per share.

Sharekhan, another prominent brokerage firm, maintains a 'buy' rating for Amber Enterprises' stock with a target price of Rs 2,800. In their July 26 report, they expressed optimism in the company's growth prospects, anticipating improvements in profitability driven by advancements in the RAC division, motors, electronics, mobility, and exports.

ICICI Securities offers a 'hold' rating for Amber Enterprises' stock, setting a target price of Rs 2,297 in their report dated July 27. This projection indicates a potential downside of more than 5% from the current market price. The firm acknowledged external factors such as unseasonal rains impacting revenue growth rates, while also acknowledging Amber's resilience in mitigating volume decline and expanding margins.

Stock Performance

Over the past six months, Amber Enterprises' stock has demonstrated a remarkable surge of 51%. In contrast, the Nifty index experienced a 12% rise during the same period. This performance differential underscores Amber Enterprises' robust market standing and its ability to outpace broader market trends.