Why is Amber Enterp. falling/rising?

Jul 04 2025 10:23 PM IST
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As of 04-Jul, Amber Enterprises India Ltd is priced at 7,349.25, up 0.24%, but shows signs of a trend reversal after three days of gains and underperformed its sector today. Despite a strong annual return of 63.39%, concerns about valuation persist due to a high enterprise value to capital employed ratio and a PEG ratio of 1.2.
As of 04-Jul, Amber Enterprises India Ltd is currently priced at 7,349.25, reflecting an increase of 17.95 or 0.24%. Despite this slight rise, the stock has shown signs of a trend reversal, having fallen after three consecutive days of gains. The stock underperformed its sector by 0.54% today, and there has been a notable decline in investor participation, with delivery volume falling by 33.78% against the five-day average. Over the past week, the stock has outperformed the benchmark Sensex, gaining 7.31% compared to the benchmark's decline of 0.74%. However, year-to-date, the stock has slightly underperformed with a decline of 0.61% against the Sensex's gain of 6.77%.

The stock's strong performance over the past year, with a return of 63.39%, is significantly higher than the market's return of 4.23%, indicating robust long-term growth potential. Factors contributing to this positive outlook include a low Debt to EBITDA ratio of 1.29 times, consistent growth in net sales, and high institutional holdings at 46.47%. However, the stock is considered expensive with a high enterprise value to capital employed ratio, and while profits have risen significantly, the PEG ratio of 1.2 suggests that the stock may be overvalued relative to its growth. This combination of strong fundamentals and valuation concerns may be influencing the stock's recent price movements.
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