Goldman Sachs has downgraded Amber Enterprises to “Neutral” from “Buy,” despite raising the target price to ₹6,300 from ₹4,550. This adjustment follows a significant appreciation in the company’s stock price. Amber, a leading player in the air conditioning and electronics manufacturing sector, has been recognized for its diversification into electronics manufacturing services (EMS).
Recently, Amber Enterprises reported a 20% increase in consolidated net profit to ₹433 crore for the September quarter, up from ₹360 crore a year ago. Consolidated revenue rose by 7.6% to ₹2,664 crore, with domestic revenue up 8.02% and international revenue rising 6.36%. The company continues to focus on diversifying its revenue mix, exploring new adjacent and ancillary businesses by leveraging core capabilities and competencies.
While the company’s diversification strategy has been well-received, Goldman Sachs emphasizes the importance of execution in sustaining long-term growth, especially amid increasing competition in the EMS sector.
