Amber Enterprises India Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹6,668.00−₹22.00 (−0.33%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

The 60-second version of Amber Enterprises India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Amber Enterprises India Limited engages in the room air conditioners (RAC) industry in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees1,960

Annual revenue₹11,850 Cr

How does it make money?

Turns over ₹11,850 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 1,960 employees supports ₹6.05 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.05 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What is the outlook?

23 analysts covering the stock expect revenue to grow about 55.3% and earnings to grow about 83.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+55.3%

Est. earnings growth+83.0%

Analysts23

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +76% while net margin moved -36% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+76%

Margin effect-36%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ P/E of 245.9x is demanding — it needs sustained high growth to justify
✗ P/E is 121% above its own historical median of 111.3x — expensive by its own standards
✗ P/B of 5.37x is a steep premium to book

Quality vs. Valuation

Company Quality

40/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

245.9x

3Y Median

111.3x

40 monthly readings · mean 115.3x · range 62.1x–202.1x

Sector Median

68.5x

median of 3 sector peers

⚠️Current valuation is approximately 121% above its 3y median of 111.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 259% above the peer median of 68.5x.

vs. its own history

Expensive

111.3x median over 40 months · +121%

vs. sector peers

Expensive

68.5x median of 3 peers · +259%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.5x

PEG

59.11

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.2% to 4.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.3% to 7.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 86% over 3 years, from ₹1,455 Cr to ₹2,702 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1,055 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 125% against revenue up 76% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 121% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 8.2% to 4.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 20.7% CAGR
Latest reported year was 12.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹1,055 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹23,517 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

245.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.37x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹27.12

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

7.2%

Weak

Low return on total capital employed

Debt/Equity

0.47x

Low

Conservative leverage

Revenue Growth (YoY)

12.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-79.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹1,055 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

35.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.2%

Average

Average margins

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6773.9 / 7098.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,746 Cr	₹6,531 Cr	₹9,674 Cr	₹11,850 Cr	+20.7%
EBITDA	₹461 Cr	₹534 Cr	₹799 Cr	₹943 Cr	+26.9%
EBITDA Margin	6.8%	8.2%	8.3%	8.0%	—
PAT (Net Profit)	₹157 Cr	₹133 Cr	₹244 Cr	₹178 Cr	+4.2%
EPS	₹46.66	₹39.41	₹71.67	₹50.28	+2.5%
ROE	8.2%	6.4%	10.7%	4.1%	—
ROCE	11.3%	10.4%	14.0%	7.2%	—
Total Debt	₹1,455 Cr	₹1,539 Cr	₹2,059 Cr	₹2,702 Cr	+22.9%
Free Cash Flow	-₹342 Cr	₹553 Cr	₹136 Cr	-₹1,055 Cr	—

🟢 Revenue has grown at 20.7% a year over 3 years.

🟢 EBITDA has grown at 26.9% a year over 3 years.

🟢 EBITDA Margin has risen from 6.8% to 8.0% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 4.2% a year over 3 years.

🟢 EPS has grown at 2.5% a year over 3 years.

🔴 ROE has fallen from 8.2% to 4.1% over 3 years (-4.2 pts).

🔴 ROCE has fallen from 11.3% to 7.2% over 3 years (-4.1 pts).

🔴 Total Debt has grown at 22.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,767 Cr

Total Liabilities

₹7,965 Cr

Cash & Equivalents

₹231 Cr

Operating Cash Flow

₹240 Cr

Capex

-₹1,295 Cr

Shareholding (proxy)

Institutional Holding

42.4%

Insider Holding

39.2%

Corporate Actions

Ex-Dividend Date

26 Mar 2020

Analyst Consensus

Recommendations

17 Buy · 3 Hold · 3 Sell

Target Price (Mean)

₹8,327.35

+24.9% vs CMP

Target Range

₹6,381 – ₹10,659

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive3 mixed2 general

Amber Enterprises India (NSEI:AMBER) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Amber Enterprises closes trading window ahead of Q2FY27 results

scanx.trade, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Amber Enterprises India Ltd. Share Price Rise Streak After

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Amber Enterprises stock rises 2% as JPMorgan upgrades to Overweight, sees catch-up potential after Q1...

Moneycontrol.com, 17 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Amber subsidiary IL JIN acquires remaining 1.50% stake in Ascent Circuits

scanx.trade, 18 Oct

CESC - 8 small, midcap stocks with upside potential of up to 50%. How many are in your portfolio?

The Economic Times, 17 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Risk

WeakBusiness Quality · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑