EMS stock surged 9 percent following the company’s announcement to demerge its electronics division. The move is seen as a strategic step to unlock value and streamline operations, attracting significant investor attention.
Share Price Movement
In Tuesday’s trading session, Amber Enterprises India Ltd’s share price rose by 8.5 percent, hitting an intra-day high of Rs.7,498.70 per share, up from the previous close of Rs.6,907.80 per share. The shares have since retreated and are trading at Rs.7,415.70 per share. Over the past three years, the stock has delivered over 580 percent returns.
What is the News
Amber Enterprises is in the spotlight following reports of its plans to demerge its electronics division. The company also intends to launch an IPO for the electronics division once the demerger is completed, with bankers already appointed for both the demerger and the subsequent IPO, according to CNBC TV18.
In Q2FY25, Amber’s electronics division reported a remarkable 98 percent growth in revenue, reaching Rs.492 crore compared to Rs.248 crore in the same period last year.
Business Segments
Amber Enterprises India Ltd operates in the HVAC industry, specializing in original design manufacturing of room air conditioners (RACs) and components.
The company has also diversified into mobility applications for railways, electronics manufacturing services (EMS), and non-RAC products, reducing its reliance on RACs. Amber maintains a dedicated R&D center focused on innovation and sustainability.
Management Guidance
Amber Enterprises India Ltd has reiterated its previous guidance of doubling its division’s revenue over the next three years, supported by a strong order book of over Rs.2000 crores and the expansion of its product portfolio.
The company expects its annual capital expenditure (capex) to remain between Rs.350 crores and Rs.375 crores, excluding the Korea Circuit capex and the Ascent expansion, for which details will be provided in due course. The revenue growth guidance stands at approximately 25 percent.
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Recent Deals
GIC Private Limited, on behalf of the Government of Singapore (GOS) and the Monetary Authority of Singapore (MAS), acquired an additional 0.27 percent (91,506 shares) from GOS and 0.05 percent (15,816 shares) from MAS in Amber Enterprises India Limited, totaling 0.32 percent (107,322 shares).
Financial Performance
In its recent financial updates, the company reported an 81 percent increase in revenue to Rs.1,685 crore in Q2 FY25 compared to the same quarter last year, while net profits surged to Rs.21 crore from a net loss of Rs.6 crore in Q2 FY24.
Company Overview
Amber Enterprises India Ltd is a leading manufacturer in the Room Air Conditioner (RAC) market, established in 1990 and publicly listed since 2017. The company specializes in OEM and ODM services, producing complete RAC units and components across 27 manufacturing facilities in India.
Written by – Siddesh S Raskar
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