Amber Enterprises share price target raised by Jefferies on multiple medium-term triggers

Shares of Amber Enterprises India Ltd. are trading with swings between gains and losses on Tuesday, March 10, after the stock fell over 7% on Monday, due to the fall seen in shares of its peer PG Electroplast after it made this announcement.

Despite some concerns, brokerage firm Jefferies sees multiple catalysts for the stock ahead.

Jefferies has maintained its "buy" rating on Amber Enterprises and raised its price target to ₹9,120 per share from ₹8,890 earlier, indicating an upside potential of 24.6% from its previous close.

Amber Enterprises shares have rallied 40% from the lows in January this year after a strong December quarter. As a result, its valuations have risen to 47 times their estimated financial year 2027 price-to-earnings, which is 5% above the historical average.

Even so, the brokerage views multiple catalysts ahead for the stock, which include the onset of summer, the electronics business, ramp-up of acquisitions, two new customers in the data centre business and others. It added that the RAC industry volume is estimated to grow in mid-teens in the ongoing calendar year, on a low base.

In the electronics business, Amber Enterprises secured three ECMS approvals, funding, technology and land for PCG manufacturing. The company is aiming to double its mobility sales in the next three years.

Jefferies expects Amber Enterprises' Earnings per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 48% over financial year 2025-2028.

Of the 31 analysts who have coverage on the stock, 24 have a 'buy' rating, six have a 'hold' rating and one has a 'sell' rating.

Shares of Amber Enterprises are trading 0.4% higher at ₹7,342. The stock has risen 14% in the last 12 months.

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