Amber Enterprises India Ltd (AMBER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

LG Electronics

Dixon Technolog.

Crompton Gr. Con

V-Guard Industri

Blue Star

Amber Enterp.

Havells India

PG Electroplast

Eureka Forbes

Whirlpool India

Voltas

Why is Amber Enterprises India Ltd ?

Healthy long term growth as Net Sales has grown by an annual rate of 32.09% and Operating profit at 37.53%

Negative results in Mar 26

PBT LESS OI(Q) At Rs 127.20 cr has Fallen at -24.96%
PAT(Q) At Rs 84.81 cr has Fallen at -26.9%
INTEREST(9M) At Rs 221.03 cr has Grown at 28.80%

With ROCE of 9.5, it has a Expensive valuation with a 4.4 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 13.84%, its profits have fallen by -4.9%

High Institutional Holdings at 51.88%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.04% over the previous quarter.

Consistent Returns over the last 3 years

Along with generating 13.84% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

With its market cap of Rs 24,852 cr, it is the second biggest company in the sector (behind Dixon Technolog.)and constitutes 17.06% of the entire sector

Its annual Sales of Rs 12,186.48 are 13.77% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Amber Enterp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Amber Enterp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Amber Enterp.

13.84%

0.33

41.37%

Sensex

-7.86%

-0.61

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.09%

EBIT Growth (5y)

37.53%

EBIT to Interest (avg)

2.54

Debt to EBITDA (avg)

3.30

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.84

Tax Ratio

32.69%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

51.88%

ROCE (avg)

10.22%

ROE (avg)

7.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

115

Industry P/E

Price to Book Value

6.09

EV to EBIT

45.80

EV to EBITDA

30.28

EV to Capital Employed

4.36

EV to Sales

2.37

PEG Ratio

Dividend Yield

ROCE (Latest)

9.53%

ROE (Latest)

5.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.53 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.62 times

NET SALES(Q)

Highest at Rs 4,147.52 cr

PBDIT(Q)

Highest at Rs 358.24 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 8.64%

EPS(Q)

Highest at Rs 38.04

-16What is not working for the Company

PBT LESS OI(Q)

At Rs 127.20 cr has Fallen at -24.96%

PAT(Q)

At Rs 84.81 cr has Fallen at -26.9%

INTEREST(9M)

At Rs 221.03 cr has Grown at 28.80%

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Here's what is working for Amber Enterp.

Operating Profit to Interest - Quarterly

Highest at 5.53 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 4,147.52 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 358.24 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 8.64%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Earnings per Share (EPS) - Quarterly

Highest at Rs 38.04

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.62 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Amber Enterp.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 127.20 cr has Fallen at -24.96%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 84.81 cr has Fallen at -26.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Nine Monthly

At Rs 221.03 cr has Grown at 28.80%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)