Stock Analysis

Amber Enterprises India Limited Just Recorded A 46% EPS Beat: Here's What Analysts Are Forecasting Next

NSEI:AMBER
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Amber Enterprises India Limited (NSE:AMBER) just released its latest quarterly results and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of ₹21b beating expectations by 21% and earnings per share (EPS) of ₹10.55, an impressive 46%ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Amber Enterprises India

earnings-and-revenue-growth
NSEI:AMBER Earnings and Revenue Growth January 28th 2025

After the latest results, the 22 analysts covering Amber Enterprises India are now predicting revenues of ₹116.3b in 2026. If met, this would reflect a major 29% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 80% to ₹118. In the lead-up to this report, the analysts had been modelling revenues of ₹109.8b and earnings per share (EPS) of ₹114 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.5% to ₹7,555per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Amber Enterprises India analyst has a price target of ₹8,845 per share, while the most pessimistic values it at ₹5,192. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Amber Enterprises India is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Amber Enterprises India following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Amber Enterprises India will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Amber Enterprises India. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Amber Enterprises India analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Amber Enterprises India (1 is a bit unpleasant!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

About NSEI:AMBER

Amber Enterprises India

Provides room air conditioner solutions in India.

Solid track record with reasonable growth potential.

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