NSEI:AMBER

Stock Analysis Report

Amber Enterprises India

Executive Summary

Amber Enterprises India Limited provides solutions to air conditioner original equipment manufacturer/original design manufacturer industries in India.

Rewards

Earnings are forecast to grow 18.68% per year

Earnings grew by 257.2% over the past year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Amber Enterprises India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMBER's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.9%

AMBER

0.06%

IN Consumer Durables

-0.8%

IN Market


1 Year Return

149.0%

AMBER

36.5%

IN Consumer Durables

11.1%

IN Market

Return vs Industry: AMBER exceeded the Indian Consumer Durables industry which returned 34.8% over the past year.

Return vs Market: AMBER exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

AMBERIndustryMarket
7 Day-3.9%0.06%-0.8%
30 Day18.9%4.7%-2.3%
90 Day59.3%11.9%2.1%
1 Year149.4%149.0%37.3%36.5%13.1%11.1%
3 Yearn/a47.4%45.2%22.9%16.2%
5 Yearn/a95.4%90.7%34.9%22.6%

Price Volatility Vs. Market

How volatile is Amber Enterprises India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Amber Enterprises India undervalued compared to its fair value and its price relative to the market?

29.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMBER (₹1573.35) is trading above our estimate of fair value (₹740.92)

Significantly Below Fair Value: AMBER is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMBER is poor value based on its PE Ratio (29.5x) compared to the Consumer Durables industry average (22.9x).

PE vs Market: AMBER is poor value based on its PE Ratio (29.5x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMBER is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: AMBER is overvalued based on its PB Ratio (4.5x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Amber Enterprises India forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMBER's forecast earnings growth (18.7% per year) is above the savings rate (6.5%).

Earnings vs Market: AMBER's earnings (18.7% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: AMBER's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMBER's revenue (15.5% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: AMBER's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMBER's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Amber Enterprises India performed over the past 5 years?

34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMBER has high quality earnings.

Growing Profit Margin: AMBER's current net profit margins (4.2%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: AMBER's earnings have grown significantly by 34.5% per year over the past 5 years.

Accelerating Growth: AMBER's earnings growth over the past year (257.2%) exceeds its 5-year average (34.5% per year).

Earnings vs Industry: AMBER earnings growth over the past year (257.2%) exceeded the Consumer Durables industry 13.9%.


Return on Equity

High ROE: AMBER's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amber Enterprises India's financial position?


Financial Position Analysis

Short Term Liabilities: AMBER's short term assets (₹10.1B) exceed its short term liabilities (₹7.2B).

Long Term Liabilities: AMBER's short term assets (₹10.1B) exceed its long term liabilities (₹3.9B).


Debt to Equity History and Analysis

Debt Level: AMBER's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: AMBER's debt to equity ratio has reduced from 145.6% to 33.7% over the past 5 years.

Debt Coverage: AMBER's debt is well covered by operating cash flow (30.3%).

Interest Coverage: AMBER's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: AMBER has a high level of physical assets or inventory.

Debt Coverage by Assets: AMBER's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is Amber Enterprises India's current dividend yield, its reliability and sustainability?

0.20%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: AMBER's dividend (0.2%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: AMBER's dividend (0.2%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: AMBER is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: AMBER is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMBER's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Jasbir Singh (44yo)

2.5yrs

Tenure

₹16,200,000

Compensation

Mr. Jasbir Singh has been Chairman and Chief Executive Officer of Amber Enterprises (India) Pvt. Ltd. Mr. Singh served as Managing Director of Amber Enterprises (India) Pvt. Ltd. Mr. Singh joined Amber Ent ...


CEO Compensation Analysis

Compensation vs Market: Jasbir's total compensation ($USD226.53K) is below average for companies of similar size in the Indian market ($USD397.73K).

Compensation vs Earnings: Jasbir's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jasbir Singh
Chairman & CEO2.5yrs₹16.20m22.45% 11.1b
Daljit Singh
MD & Executive Director12.1yrs₹14.40m19.32% 9.5b
Sudhir Goyal
Chief Financial Officer0yrs₹5.08m0.0020% 987.6k
Sanjay Arora
Director of Operations7.6yrs₹6.87m0.0020% 987.6k
Konica Yadav
Company Secretary & Compliance Officer0yrs₹945.54k0.00038% 187.7k
Udaiveer Singh
President of RAC Operations16.1yrs₹5.06m0.0019% 953.1k

5.0yrs

Average Tenure

43yo

Average Age

Experienced Management: AMBER's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jasbir Singh
Chairman & CEO2.5yrs₹16.20m22.45% 11.1b
Daljit Singh
MD & Executive Director12.1yrs₹14.40m19.32% 9.5b
Kartar Singh
Chairman Emeritus0yrs₹686.68k2.25% 1.1b
Sudha Pillai
Independent Director2.4yrs₹700.00kno data
Girish Ahuja
Independent Director2.4yrs₹550.00kno data
Manoj Sehrawat
Non Executive Nominee Director3.1yrsno datano data
Satwinder Singh
Independent Director2.4yrs₹750.00kno data

2.5yrs

Average Tenure

55yo

Average Age

Experienced Board: AMBER's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Amber Enterprises India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amber Enterprises India Limited
  • Ticker: AMBER
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: ₹49.382b
  • Shares outstanding: 31.45m
  • Website: https://www.ambergroupindia.com

Location

  • Amber Enterprises India Limited
  • Universal Trade Tower
  • 1st Floor
  • Gurugram
  • Haryana
  • 122018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540902BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2018
AMBERNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2018

Biography

Amber Enterprises India Limited provides solutions to air conditioner original equipment manufacturer/original design manufacturer industries in India. It designs and manufactures a range of room air conditioners (RACs), including window air conditioners, indoor units, outdoor units, and split and window air conditioners; and inverter RACs. The company also offers functional components of RACs, such as heat exchangers, motors, and multi-flow condensers and invertor printed circuit boards; and other RAC components comprising sheet metal components, copper tubing, plastic extrusion, vacuum forming, and injection molding components. In addition, it manufactures components for other consumer durables and automobiles, such as case liners for refrigerator, plastic extrusion sheets, and sheet metal components for microwave, as well as washing machine tub assemblies, other sheet metal, plastic injection molding, and extrusion components for automobiles and metal ceiling industries. The company also exports its products. Amber Enterprises India Limited was incorporated in 1990 and is based in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:18
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.