Amber Enterprises zooms 9%, hits 52-week high on reports of de-merger plans

Shares of Amber Enterprises gained up to 8.57 per cent to hit a new 52-week high at Rs 7,482 a piece on the BSE in Tuesday’s intraday trade. Amber Enterprises share price moved up after reports emerged on its plans to demerge its Electronics division.

 

According to a report by CNBC TV 18, apart from the de-merger plans, Amber Enterprises is also preparing to launch an IPO for its electronics division once the demerger process concludes. 

 

Reportedly bankers for the demerger and subsequent IPO have already been appointed. Business Standard could not verify the news report individually. 

 

In the second quarter of the 2024-25 financial year (Q2FY25) , Amber Enterprises' electronics division reported a revenue of Rs 492 crore, marking a significant 98 per cent increase compared to Rs. 248 crore in the same quarter of the previous year.

 

 

Overall, Amber Enterprises consolidated revenue surged 81 per cent to Rs 1,685 crore in Q2FY25, up from Rs 927 crore in the same quarter last year. Ebitda rose 91 per cent to Rs 114 crore, compared to Rs 59.6 crore in Q2 of the previous year. The company's margin improved by 40 basis points, reaching 6.8 per cent from 6.4 per cent. 

 

Additionally, Amber Enterprises recorded a net profit of Rs 20.9 crore, a significant turnaround from a loss of Rs 5.7 crore in Q2 of the previous year.

 

Meanwhile, on the equities side, Amber Enterprises’s stock has outperformed the market, as in the last six months it has surged 80 per cent, while gaining 143 per cent in the last one year. In comparison BSE Sensex has risen 1.8 per cent in the last six months and 10.7 per cent in a year. 

 

The company has a total market capitalisation of Rs 25,124.61 crore. Its shares are trading at a price to earnings multiple of 290.56 times and at an earning per share of Rs 23.72. 

 

At 11:57 AM; the shares of the company were up 7.79 per cent at Rs 7,428.10 a piece. By comparison, the BSE Sensex was trading 0.30 per cent higher at 78,774.92 level.   Amber Enterprises India specialises in the manufacturing and supply of air conditioners, HVAC components, and other consumer durable products across India.