Shares of Amber Enterprises India Ltd. extended rally as it rose over 2% on Monday with the stock trading Rs 8,067.50 apiece after the company signed a manufacturing collaboration agreement with Oppo Mobiles India. This collab marked its entry into large-scale smartphone production thus expanding its customer base beyond consumer durables and electronics components.
With this partnership, Amber Group will manufacture mobile phones for Oppo India's portfolio of brands that includes Oppo, OnePlus and Realme.
Brokerages are broadly positive on Amber's smartphone manufacturing push, seeing the Oppo deal, PLI benefits and component backward integration as long-term growth and rerating triggers, though JPMorgan remains neutral on near-term margins.
Kotak Securities maintained its buy rating on Amber and hiked the target price to Rs 8,710 from Rs 8,150. The brokerage cited strategic diversification into the smartphone segment. It said Mobile PLI 2.0 and Component PLI are key triggers for Mobile EMS manufacturers. Scaling volumes in line with guidance and backward integration into components will be key long-term triggers, according to Kotak Securities. The brokerage revised its FY28 and FY29 estimates by 8% and 15%, respectively.
JPMorgan maintained a neutral rating on Amber with a target price of Rs 7,650. The brokerage said the partnership structure is a sublease arrangement, resulting in minimal capex. It noted that the economics of mobile manufacturing involve low margins and high ROCE. JPMorgan said Amber's strategy is to eventually get into component manufacturing.
CLSA maintained its outperform rating on Amber with a target price of Rs 8,100. The brokerage said the Oppo deal is a significant opportunity. It added that value addition is a key focus area. CLSA calculated an EPS impact of 15% and 21% in FY28 and FY29, respectively. The brokerage sees this as a rerating event for Amber.
Amber Enterprises India Ltd. Share Price Today
Amber Enterprises India Ltd. Share Price Today
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The scrip rose as much as 2.89% to Rs 8,117 apiece intraday on Monday at 9:20 a.m. This compares to a 0.42% rise in the NSE Nifty 50 Index.
It has risen 21.63% in the last 12 months and 24.20% year-to-date. Total traded volume so far in the day stood at 0.54 times its 30-day average. The relative strength index was at 57.75.
Out of 30 analysts tracking the company, 27 maintain a 'buy' rating, seven maintain a "hold", and three maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 8,214.22 implies an upside of 2.6%
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