The brokerage has increased its price target on the stock to ₹6,300 from ₹4,550 earlier. The revised price target is at similar levels to Amber’s closing price on Wednesday.
Goldman Sachs wrote in its note that Amber Enterprises is a key beneficiary in the Air Conditioners, electronics sector in India and with new growth drivers emerging for the company, the seasonality dependence is reducing for the stock.
The market has already rewarded Amber Enterprises recently for its entry into electronics and its presence in the AC segment, as the stock has risen 107% so far in 2024.
In its recent earnings call, Amber Enterprises mentioned that the company will outpace the industry growth rate in the second half of the current financial year, and that the AC industry’s growth can at least triple in the next five years.
Amber Enterprises expects revenue growth of 25% for the current financial year on a consolidated basis, while the topline for the electronics division can grow by 45%.
The company also plans to invest ₹650 crore for advanced manufacturing technology for multi-layered Printed Circuit Boards (PCB), a market, which the company expects to become worth ₹80,000 crore in size by financial year 2030.
Amber Enterprises has been rewarded by the market and the focus will now shift to execution of its plans, Goldman Sachs wrote in its note.
Shares of Amber Enterprises ended little changed on Wednesday at ₹6,469.
