By Prashant Marathe | EduInvesting.in | 21 May 2025
⚡ At a Glance:
While you were busy refreshing Nifty 50 charts and asking ChatGPT, “Multibagger stock batao na bhai,” — Amber Enterprises quietly climbed to ₹6,500/share.
From a low of ~₹1,950 in March 2023 to ₹6,500 now in May 2025, that’s a +230% rally.
And you? You were looking at Paytm.
🏭 About the Company:
- Amber Enterprises India Ltd. is one of India’s largest contract manufacturers of air conditioners.
- They build components and entire ACs for brands like LG, Voltas, Whirlpool, Blue Star, Panasonic, Daikin, Hitachi, Godrej — you name it.
- They don’t sell under their own name. They’re the ghost in your split AC.
Think of them as the TSMC of Indian consumer durables.
🧠 Key Management:
- Jasbir Singh – Chairman & MD, the man who turned metal sheets into a ₹20,000 Cr market cap dream.
- Deep bench of supply-chain veterans and manufacturing optimizers.
📊 Financials: FY24 + Trailing Twelve Months (TTM)
| Metric | FY24 | TTM (FY25E) |
|---|---|---|
| Revenue | ₹5,049 Cr | ₹6,150 Cr |
| EBITDA | ₹410 Cr | ₹515 Cr |
| Net Profit | ₹140 Cr | ₹215 Cr |
| EPS | ₹43.5 | ₹66.9 |
| ROCE | 12.5% | 15.4% |
| Debt/Equity | 0.37 | 0.29 |
Clean-up complete. Margins expanding. Volumes booming. And summer is only getting hotter (climate change is bullish for once?).
📈 The Rally You Slept Through:
- 📉 March 2023: Stock crashes to ₹1,950 amid slowdown fears
- 🔁 April–June 2023: Volume uptick, order books strong
- 🧼 2024: Margins clean up, debt reduces, PLI wins
- 🚀 Feb 2025: Breaks ₹5,000 mark as earnings surprise
- 🔥 Now: ₹6,500 — while you’re still asking if it’s too late
Spoiler: If you ask that question, it probably is.
💸 Valuation Now:
- CMP: ₹6,500
- TTM EPS: ₹66.9
- P/E = 97x 😬
Yes, it’s expensive. But so is missing the bus.
👇 Fair Value Calculation (Forward):
Let’s assume:
- FY26E EPS = ₹90 (conservative growth)
- Target P/E = 55x (still rich, but justified for a market leader with tailwinds)
🎯 Fair Value = ₹4,950
Which means: You’re entering at a 30% premium now.
🚀 Growth Outlook:
- Room AC demand in Tier 2/3 India exploding post-heatwave
- PLI Scheme benefits for AC components
- Increasing shift from China dependency = Make-in-India tailwind
- Big push into mobility cooling (railway coaches, EVs)
- Acquisitions in fans, motors, and ventilation play — diversifying from ACs
They’re building India’s HVAC backbone.
🧠 EduInvesting Take:
You ignored this because:
- It wasn’t a consumer brand
- It didn’t make flashy headlines
- The stock was already ₹2,000 and you thought it was “expensive”
But like Page Industries, Bosch, or Nestlé — the real multibaggers are boring, deep-tech manufacturers with durable moats.
Amber made your AC. You ignored their stock. Now your AC and your regret — both are running hot.
🧯 Risks:
- High P/E: One miss, and this valuation melts faster than an LG window unit.
- Client Concentration: Still top 5 brands = 70% revenue
- China dumping: Risk if cheap imports start again
- Execution risk in expanding non-AC categories
🤡 Meme Zone:
- You in 2023: “₹2,000 ka stock hai, mehenga hai.”
- You in 2025: “Bro ₹6,500 is also okay, I’ll buy 1 share and average down.”
Tags: Amber Enterprises, multibagger stocks 2025, AC stocks India, PLI scheme, HVAC India, undervalued manufacturers, EduInvesting satire
